Back to Assignment Attempts Keep the Highest/4 6. Problem 10.06 (Cost of Common Equity) A-Z beek Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow $ per year. Callahan's common stock currently sells for $21.75 per share; its last dividend was $1.60, and it will pay a $1.68 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places b. If the firm's bets is 1.2, the visa-free rate is 7%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAM approach? Round your answer to two decimal places NO c. If the firm bonds earn a return of 10%, based on the bond yield-plus-risk premium approach, what will be r. Use the judgmental risk premium of 1% in your calculations. Round your answer to two decimal places d. If you have ecual confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. Grade it Now Save & Continue Continue without saving