Question: help with these please:) eBook Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 5% per


eBook Problem Walk-Through The future earnings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 5% per year. Callahan's common stock currently sells for $27.00 per share; its last dividend was $1.60; and it will pay a $1.68 dividend at the end of the current year. a. Uning 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 beta in 1.2, the risk free rate is 3%, and the average retum on the market is 14%, what will be the firm's cost of common equity waing the CAPM approach Round your answer to two decimal places C. It the firm's bonds com a return of 12%, based on the bond-yield-plus-ik-premium approach, what will be ra? Use the midpoint of the risk premium wie diecused in Section 10.5 in your calculations. Round your answer to two decimal places Cory d. 1 you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not found intermediate calculations found your answer to two decimal places Palencia Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of dete is 12%, and its marginal tax rate 1s 25%. The current stock price is Po - $24.50. The last dividend was Do = $2,25, and it is expected to grow at a 6% constant rate. What is its cost of common equity and Its WACC) Do not round Intermediate calculations. Round your answers to two decimal places WACC Pearson Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC I 11.10%. What is Pearson's cost of common equity? Do not round Intermediate calculations. Round your answer to two decimal places
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