Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $52 per share. The stock would pay a constant annual dividend of $3.85 per share. If the firm's marginal tax rate is 25%, what is the company's cost of preferred stock? Round your answer to two decimal places. Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $2.10 and it expects dividends to grow at a constant rate g=5.6%. The firm's current common stock price, P0, is $20.00. The current risk-free rate, raf, =4.9%; the market risk premium, RPM, =6.4%, and the firm's stock has a current beta, br=1.20. Assume that the firm's cost of debt, rd is 16.2\%. The firm uses a 3.4% risk premium when arriving at a balipark 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. \begin{tabular}{l|l} CAPM cost of equity: & % \\ Bond yield plus risk premium: & % \\ DCF cost of equity: \\ What is your best estimate of the firm's cost of equity? \end{tabular}