points What is Bearkat Autos' cost of common equity using the DCF method?(Instructor's Hint: Please go the Chapter 10 class slides on "Find the cost of Common Equity Using the DCF Approach" Here is the formula we use for DCF model: 1, = (D/Po)+g Let me explain. D, is next year's dividend. Po is the price for common stock. g is the growth rate of dividend. So in order to calculate the cost of common equity using DCF model, you will need to gather the following information: What is the company's next year dividend (D1)? Remember, the problem provides you with Do (which is the most recently paid dividend), from reading the question we know Do is $2.36. So you will need to calculate D1. The formula is the following: D1 = Do(1 + g) : You also need to know that is the company's price of common stock? What is the dividend growth rate? When you read the question, you will know that price of common stock is $73 a share: the dividend growth rate is 2%)