Big Time Corp. is trying to determine their cost of equity. You would like to use 3 different approaches. Given the following information, calculate the cost of equity according to the CAPM approach , Bond Yield plus Risk Premium approach, and the Discounted Cashflow approach:

Current risk-free return is 3.86%

Market risk premium is 5.75%

Beta is 0.92

Bond yield is 10.28%

The firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%

Their stock is currently selling for $32.45 per share

The firm expects to pay a per-share dividend of $1.38 in one year

Analysts project the firm's growth rate will be a constant 5.72%

Hints for the 3 Approaches:

(1) CAPM Approach: rs = Rf + Betai(market risk premium)

(2) Bond-Yield-Plus-Risk-Premium Approach: rs = Bond Yield + Risk premium

(3) Discounted Cash Flow (DCF) Approach: rs = D0 * [(1 + g)/P0] + g