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he future eamings, dividends, and comnun stock price of Caliahan Technologies Inc- are expected to grow 6% per-vear. Cailahin's common stock currently seits f 28.25

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he future eamings, dividends, and comnun stock price of Caliahan Technologies Inc- are expected to grow 6% per-vear. Cailahin's common stock currently seits f 28.25 per thare; its last dividend was \$2.00; and it will pay a $2.12 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, Rotund your answer to two decimal places. b. If the firm's beta is-1:8, the risk-free rate-is 3%, and the sverage return on the market is 12%, what will be the firn's cost of commen equity using the CAPH approach? Round your answer to two decimal places; c. If the firm's bonds eam a return of 11%, based on the bond-yield-plusuisk-premium approach, what will be th? Use the judgmental risk premiurn of 45 in Vour calculations. Round your answer to two decimal places. d. If vou have equal confidence in the inbuts used for the three approaches; what is vour estinat of callahan) cost of common equity? Do nat round intermediate calcolations, Round your answer to two decimal blaces

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