Practice Questions: A

27 (3) What is Coleman's estimated cost of common equity using the CAPM approach? \begin{tabular}{|l|l|r|l|l|} \hline 28 & & & & \\ \hline 29 & & 1.2 & \\ \hline 30 & rRF & 7% & \\ \hline 31 & RP & 6% & \\ \hline 32 & & & & \\ \hline 33 & rs & & & \\ \hline 34 & & & & \\ \hline & & & & \\ \hline \end{tabular} (4) What is the estimated cost of common equity using the DCF approach? \begin{tabular}{|l|r|r|l|} \hline Price & & & \\ \hline Current dividend & $50 & & \\ \hline Constant growth rate & $4.19 & & \\ \hline & 5% & & \\ \hlineD1 & & & \\ \hliners & & & \\ \hline \end{tabular}