4. Problem 10.06 (Cost of Common Equity) The future earnings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 6% per year, Callahar's common stock currently selis for 328.50 per share; its last dividend was $2.50; and it will pay a $2.65 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not tound intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 1.6, the risk-free rate is 8%, and the average return on the market is 13%, what will be the firm's cosk of commen equity using the capsl apprasch? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what witl be r1 ? Use the midpoint of the risk premium range discutsed in. Section 105 in your caiculations. Pound your anawer to two decimat places. d. If you have equal confidence in the inputs used for the three approsches, what is your estimate of Cailahan's cost ef common equity? Da not round intermediate calculations. Rhound your onswer to two decimal places. 4. Problem 10.06 (Cost of Common Equity) The future earnings, dividends, and common stock price of Callahan Technologies Inci are expected to grow 6% per year. Callahan's common stock currently sells for s2e. so per share; its last dividend was $2.50; and it will pay a $2.65 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not tound intermediate calculotions. Round your answer to two decimal places. b. If the firm's beta is 1.6, the risk-free rate is 8%, and the average return on the market is t3%, what will be the firm's coss of commen equity using the Capsy approuch? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what with be ro? Use the midpoint of the risk premium range discussed in Section 105 in your caiculations. Pound your anawer to two decimal places. d. If you have equal confidence in the inputs used for the three approsches, what is your estimate of Callahan's cost ef common equity? bo not round interinediate calculations, Round your answer to two decimal places. 4. Problem 10.06 (Cost of Common Equity) The future earnings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 6% per year, Callahar's common stock currently selis for 328.50 per share; its last dividend was $2.50; and it will pay a $2.65 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not tound intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 1.6, the risk-free rate is 8%, and the average return on the market is 13%, what will be the firm's cosk of commen equity using the capsl apprasch? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what witl be r1 ? Use the midpoint of the risk premium range discutsed in. Section 105 in your caiculations. Pound your anawer to two decimat places. d. If you have equal confidence in the inputs used for the three approsches, what is your estimate of Cailahan's cost ef common equity? Da not round intermediate calculations. Rhound your onswer to two decimal places. 4. Problem 10.06 (Cost of Common Equity) The future earnings, dividends, and common stock price of Callahan Technologies Inci are expected to grow 6% per year. Callahan's common stock currently sells for s2e. so per share; its last dividend was $2.50; and it will pay a $2.65 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not tound intermediate calculotions. Round your answer to two decimal places. b. If the firm's beta is 1.6, the risk-free rate is 8%, and the average return on the market is t3%, what will be the firm's coss of commen equity using the Capsy approuch? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what with be ro? Use the midpoint of the risk premium range discussed in Section 105 in your caiculations. Pound your anawer to two decimal places. d. If you have equal confidence in the inputs used for the three approsches, what is your estimate of Callahan's cost ef common equity? bo not round interinediate calculations, Round your answer to two decimal places