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pls need answer now in 15 mins. Callahan's common stock currently sells for $52 per share. Its last dividend was $3.80 and is expected to
pls need answer now in 15 mins.
Callahan's common stock currently sells for $52 per share. Its last dividend was $3.80 and is expected to grow at a constant rate of 7%. If the firm's beta is 1.25, the risk-free rate is 5% and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? What is the firm's cost of common equity using the DCF approach? 15.50%; 14.65% O 16.25%; 14.82% O 16.25%: 14.31% 15.00%: 14.82% 15.00%; 14.31% EEC uses debt and common equity. It can borrow unlimited amount at rd = 9.5% as long as it finances at its target capital structure - 30% debt and 70% common equity. Its last common stock dividend was $1.50 and expected to grow at a constant rate of 6%. EEC's common stock is selling for $18 per share; its tax rate is 25%. Estimate EEC's WACC. O 12.52% 14.33% O 13.65% O 13.25% 12.17%Step by Step Solution
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