LaForge's common stock is currently selling for $50 a share. Its last dividend was $4.19, and dividends are expected to grow at a constant rate of 5% in the forseeable future. LaForge's beta is 1.2, and its yield on a T-bond is 5%, and the market risk premium is estimated at 5%. For the bond yield plus risk premium approach, use a maximum risk premium.

A. What is LaForge's estimated cost of common equity based on the CAPM approach? [ Select ] [".142", ".060", ".160", ".110"]

B. What is LaForge's estimated cost of common equity using the DCF approach? [ Select ] [".060", ".07", ".090", ".138"]

C. What is the bond yield plus risk premium estimate to LaForge's cost of common equity? [ Select ] [".07", ".14", ".13", ".10"]