If a firm cannot invest retained earmings to earn a rate of return the shareholders' required rate of return, it should return those funds to its stockholders. The current nisk-free rate of retum is 4.20% and the current market risk premusm is 6.60%. Fuzzy Button Clothing Company has a beta of 1.56. Using the Capital Asset Pricong Model (CAPM) approach, Fiazey Dutton's cost of equity is Green Gaterpillar Garden Supplies inc, is clesely hedd and, as a result, cannot generate relable inputs for the CAPM approach, Green Caterpitlar's bonds yeld 11.50%, and the firms analysts estimate that the firm's risk premium on its stock relative to its bonds is 3.00%, Using the bond-yeldolus risk-premium approach, the firm's cost of equity is The sock of Whe Harvster Manufacturing Ine. is currently selling for $25.67, and the firm expects its dividend to be $1.38 in one year. Analysts. project the firm's growth rate to be constant at 5.70 n , Using the discounted cash flow (DCF) approach, Elue Hamster's cost of equity is estimated to be