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6. Problem 10.05 (Cost of Common Equity) eBook Problem Walkthrough The future amiegs, dividends, and common stock price of Calohan Technologies Inc. are expected to

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6. Problem 10.05 (Cost of Common Equity) eBook Problem Walkthrough The future amiegs, dividends, and common stock price of Calohan Technologies Inc. are expected to grow 5% per year. Caltan's common stock currently sets for $24.75 per share its lant dividende was $2.40; and will pay a $2,52 Gvidend at the end of the current year. 2. Using the DCF approach, what is its cost of common equity? Do not round vernediate catodations. Round your answer to two decimal places 5. If the firm's beta is on the risk tree rates **and the rage return on the market 12%, what will the cont of common ecotyg the CAPM 20 proch? Pound Your wer to two decimal places c. If the firm's bends am a return of 12 based on the bondelpunuhat we be the mpolet of the main premom page ascunded in section 10-s in your Clotion. Round your wer to two decimal places of you have equal confidence in the inputs used for the tree och wer to the decimal aces of all contur common city? Do not rond termediate calculations. Round your

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