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Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond - yield - plus - risk - premium approach,
Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bondyieldplusriskpremium approach, and the DCF model. Barton expects next year's annual dividend, D to be $ and it expects dividends to grow at a constant rate g The firm's current common stock price, P is $ The current riskfree rate, rRF; the market risk premium, RPM and the firm's stock has a current beta, b Assume that the firm's cost of debt, rd is The firm uses a risk premium when arriving at a ballpark estimate of its cost of equity using the bondyieldplusriskpremium approach.
What is the firm's cost of equity
CAPM cost of equity: Blank
Bond yield plus risk premium: Blank
DCF cost of equity: Blank
What is your best estimate of the firm's cost of equity? Blank Round your answers to decimal places.
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