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e future eamings, dividends, and common stock price of Callahan Technoiogies inc are expected to grow 5% per yesr. Callahan's common stock currently sells for

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e future eamings, dividends, and common stock price of Callahan Technoiogies inc are expected to grow 5% per yesr. Callahan's common stock currently sells for $28.00p are; its tast dividend was $1.80; and it will pay a $1.89 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. flound your answer to two decimal places. b. If the firm's beta is 0.6, the riskefree rate is 3%, and the average return on the market is 13%, what will be the firm's cost of comriton equity using the CapM approach Round your answer to two decimal places. c. If the firm's bonds eam a return of 417 , based on the bond-yield-plus-risk'premium approach, what will be fy? Use the judgmental risk premium of 47 in your calculations. R.ound your answer to two decimal places. d. If you have equal comfence in the inputs used for the three approsches, what is your estinate of Calahan's cost of common equity? Do not round intermediste calculations. Round your ansher to teo decimal places

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