Chapter 13 Assignment i Saved Help Sa 00 Problem 13-19 Cost of Equity (L04) 1.81 points Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 32.0%, and the current dividend yield is 4.00%. Its beta is 1.24, the market risk premium is 10.00%, and the risk-free rate is 3.60%. eBook a. Use the CAPM to estimate the firm's cost of equity. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Ask Print Cost of equity % References b. Now use the constant growth model to estimate the cost of equity. (Do not round intermediate calculations. Enter your answer as a whole percent.) Cost of equity %