4. Problem 10.06 (Cost of Common Equity) The fulure eamings, dividends, and common stock price of Callahan Technologies inc are expected to grow 5% per vear: Callahan's common stock currentiy sells for $20.00 per share; its last dividend was 32.20; and it will pay a 52.31 dividend the end of the current yeae. a. Using the DCF approoch, what is its cost of common equity? Do not round intermediate calcilations, Hound your answer to two dedmal places. b. If the firm's beta is 1.0 , the risk-free rate is 4%, and the average retum on the market is 13%, what wil be the fim's cost of common equity using the CapM approseh? Round your answer to twe decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus -risk-premlum approsch, what wat be r2 ? Use the fudgrsertal risk premium of 4% in your calculations. Round your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approsches, what is your estimate of Calihhin's cost of common equity? Do not round intermiediate calculatiens. Round your answer to two decimal ploces