a.\" in Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Cailahan's common stock currently sells for $24.50 per share; its last dividend was $2.40; and it wlii pay a $2.52 dividend at the end of the current year. 3. Using the DCF approach, what is its cost of common equity? Do not round intermediate calcuiatlons. Round your answer to two decimal places b. If the rm's beta is 2.1, the risk-free rate is 7%, and the average return on the market is 13%, what will he the nn's cost of common equity a using the CAPM approach? Round your answer to two decimal placw. : % c. If the rm's bonds earn a return of 11%, based on the bond-yield-plus-rlsk-premium approach, what will be r,? Use the judgmental risk premium of 4% in your calculations. Round your answer to- two decimal places. . d. If you have equal confidence in the inputs used for the three approacha, what is your estimate of Caiiahan's cost of common equity? Do not round intermediate calculations. Round your amwer to two decimal places. - \"ii: Save& Continue