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Please show work. Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF

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Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D, to be $1.70 and it expects dividends to grow at a constant rate gL = 6%. The firm's current common stock price, Po, is $30.00. The current risk-free rate, FRF, = 4%; the market risk premium, RPM, = 5.3%, and the firm's stock has a current beta, b, = 1.1. Assume that the firm's cost of debt, rd, is 7.45%. The firm uses a 3.3% risk premium when arriving at a ballpark estimate of its cost of equity using the bond-yield-plus-risk-premium approach. What is the firm's cost of equity using each of these three approaches? Do not round intermediate calculations. Round your answers to 2 decimal places. CAPM cost of equity: % Bond-Yield-Plus-Risk-Premium: % DCF cost of equity: % If you are equally confident of all three methods, then what is the best estimate of the firm's cost of equity? -Select

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