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Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 35.0%, and

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Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 35.0%, and the current dividend yield is 7.00%. Its beta is 1.30. the market risk premium is 13.00%, and the risk-free rate is 3.00%. 0. Use the CAPM to estimate the firm's cost of equity. Note: Do not round intermediote calculations. Enter your answer as a percent rounded to 2 decimal ploces. b. Now use the constant growth model to estimate the cost of equity. Note: Do not round intermediate calculotions. Enter your answer as a whole percent. c. Which of the two estimates is more reasonable? Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 35.0%, and the current dividend yield is 7.00%. Its beta is 1.30, the market risk premium is 13.00%, and the tisk-free rate is 3.00%. o. Use the CAPM to estimate the firm's cost of equity. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. Now use the constant growth model to estimate the cost of equity. Note: Do not round intermediate calculations. Enter your answer as a whole percent. c. Which of the two estimates is more reasonable

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