Golden State Home Health, Inc., is a large, California-based for- profit home health agency. Its dividends are expected to grow at a constant rate of 5 percent per year into the foreseeable future. The firm's last dividend (D₀) was $1, and its current stock price is $10. The firm's beta coefficient is 1.2; the rate of return on 20-year T-bonds currently is 8 percent; and the expected rate of return on the market, as reported by a large financial services firm, is 14 percent. Golden State's target capital structure calls for 60 percent debt financing, the interest rate required on its new debt is 9 percent, and the firm's tax rate is 30 percent. a. What is the fir m's cost-of-equity estimate according to the DCF method? b. What is the cost-of-equity estimate according to the CAPM? c. On the basis of your answers to parts a and b, what would be your final estimate for the firm's cost of equity? d. What is your estimate for the fir m's corporate cost of capital?