Question: eBook M Problem Walk-Through The future comings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Collshian's common

 eBook M Problem Walk-Through The future comings, dividends, and common stock

eBook M Problem Walk-Through The future comings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Collshian's common stock currently sells for $29.25 per share; its tast dividend was $1.00, and it will pay a $1.89 dividend at the end of the current year, a. 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 bete is 19, the risk free rate is 4%, and the average retum on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places c. the firm's bonds com a retum of 12%, med on the bond yield plus risk premium approach, what will be ex? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations, Round your answer to two decimal places d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Collahan's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places

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