Question: help please! Quantitative Problem: Barton Industries estimates its cost of common equity by using three approachest the CApM, the bond-yield-plus-risk-premium approach, and the DCF model.

help please! help please! Quantitative Problem: Barton Industries estimates its cost of common equity

Quantitative Problem: Barton Industries estimates its cost of common equity by using three approachest the CApM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 5.8%. The firm's current common stock price, Po, is $20.00. The current risk-free rate, fkr,=4.8%; the market risk premium, RP has a current beta, b,=1.30. Assume that the firm's cost of debt, rd, is 14.85%. The firm uses a 3.5% risk premium when arriving at a ballpark estimate of its cost of equity using the bond-yield-plus-risk-premium approach. What is the firm's cost of equity using each of these three approaches? Round your answers to two decimal places. CAPM cost of equity: Bond yield plus risk premium: Def cost of equity: What is your best estimate of the firm's cost of equity

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