Answer the following problems please

The cost of raising capital through retained rings is the cost of raising capital through issuing a common stock. The cost of equity using the CAPM approach The yield on a three- month-bilis 3, the yield on a 10-year T-bond is 4.09%. The market risk premium is 7.77% and the Jefferson Company has a bota of 1.10. Using the Capital Asset Pricing Model (CAPM) approach, Jefferson's cost of equity is The cost of equity using the bond yield plus risk premium approach In contrast, the Jackson Company is closely held and therefore, cannot generaterkable inputs with which to apply the CAPM method to estimate its cost of internal equity (retained earnings). However, its management to that its outstanding bands are currently yolding 9.40%, and the firm's analysts estimate that the risk premium of its stocks over its bonds is currently 2.04%. As result, Jackson's cost of internal uity (a)-based on the wn-bondyild-plus-judgemental-isk-peatum approach 12.58% O 13.734 O 14.30 The cost of equity using the discounted cash flow for dividend-yield-plus-growth-rate) approach Kirby Enterprise's stock is currently selling for S18.00 par share, and the fem expects its par share dividend to be $4.00 in the year. Analysis project the firm's growth rate to be constant at 4.0. Using the discounted cash flow or dividend yield-plus-Genth-dae) approach, what is Kirby's cost of internal equity? O 2297 O 27.02% O 28.37% 0 36.48% Estimating growth rates the DCF ( dividend It is often difficult to estimate the expe a future dividend growth rate for use in estimating the cost of existing equ yield-plus-growth-rate) approach. In general, there are the available methods to generate such an estimate: . Carry forward a Historical realized growth rate, and apply it to the future. . Locate and apply an expected future growth rate prepared and published by security analysis. . Use the ration Growth model Suppose Kirby Enterprise is currently distributing 45% of its earnings as cash dividends. It has a historically generated an average return on aquily (ROE) of 15.50%. It is reasonable to estimate Kirby's growth rate is