future earnings, dividends, and common stock price of Callahan Technologies Inc, are expected to grow 7% per year. Callahan's comrnon stock currently sel $27.75 per share; its last dividend was $2.00; and it will pay a $2.14 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. Round your answer to two decimal places. b. If the firm's beta is 0.8, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. c. If the firm's bonds eam a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be ra? Use the judgmental risk premium of 496 in your calculations. Found your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equilty? Do not round intermediate calculations. Round your answer to two decimal places. ne future eamings, dividends, and common stock price of Caliahan Technologies Inc. are expected to grow 7% per year. Callahan's common stock currently sells for $27.7 er share; its last dividend was $2,00; and it will pay a $2.14 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; Round your answer to two decimal places. b. If the firm's beta is 0.8, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CapM approach? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yleld-plus-risk-premlum approach, what will be ra? Use the judgmental risk premium of 4% in your calculabions, Round your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediate calculations. Rhound your answer to two decimal places. he future earnings, dividends, and common stock price of Caltahan Technologies Inc, are expected to grow 75 per yeat. Callahan's common stock currencly sells for $27.75 Der share; its iast dividend was $2.00; and it will pay a $2.14 dividend at the end of the currens year. a. Uuing the OCF approsech, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal plsces. b. It the firmis beta is 0.5, the risk-free rote is 5%, and the average retum on the market in 22%, what will be the fimis cost of common equity using the capM appeosch? 7lound your answer to two decmal places. 6. H the firm's bones tam a return of 1175 , based on the bond-peld-plus-risk-premium approsch, what wal be rat use the judgmental risk premiam of 496 in your caicusatione. Acund your antwer to two decimel placet. d. It you have equal contidnice in the irouts used for the the approaches, what is your estimate of Callahan's cost of common equity? Do not round intermediace. culculationt. Mound yout answer to two decimal places. The future earnings, dividends, and common stock price of Callahan Technologles Inc. are expected to grow 7% per ye per share; its last dividend was $2.00; and it will pay a $2.14 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. Round yo % b. If the firm's beta is 0.8, the risk-free rate is 5%, and the average return on the market is 12%, what will be the approach? Round your answer to two decimal places. c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs ? Us calculations. Round your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of calculations. Round your answer to two decimal places. 9s, dividends, and common stock price of Callahan Technologies Inci are expected to grow 7% per year, Callahan's common stock currently sells for $27.7 th dividend was $2.00; and it will pay a $2,14 dividend at the end of the current year. the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. \% e firm's beta is 0.8, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM roach? Round your answer to two decimal places. the firm's bonds earn a retum of 11%, based on the bond-yield-plus-risk-premium approach, what will be ri? Use the judgmental risk premium of 4% in your aleulations. Rlound your answer to two decimal places. If you have equal confidence in the inouts uses for the three approaches, what is your estimate of Caliahan's cost of common equity? Do not round intermediate calculations, Round your answer to two tecimal places
