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Intro Longing Toys Inc. has just paid an annual dividend of $0.52 per share. Analysts expect the firm's dividends to grow by 8% forever. Its

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Intro Longing Toys Inc. has just paid an annual dividend of $0.52 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price is $36.5 and its beta is 1.1. The risk-free rate is 3% and the expected return on the market portfolio is 10%. Its bonds have a yield to maturity of 7%, and the risk-premium of Longing's stock over its bonds is 5%. Part 1 - Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings according to the DCF approach? 3+ decimals Submit Part 2 | Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings according to the CAPM? 3+ decimals Submit Part 3 | Attempt 1/3 for 10 pts. What is the cost of equity from retained earnings according to the bond yield plus risk premium approach? 3+ decimals Submit Part 4 |Attempt 1/3 for 10 pts. What is your best guess for the cost of equity from retained earnings , using the midpoint of the range? 3+ decimals Submit

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