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Quantitative Problem: Barton Industries eatimates its cost of common equity by using three approsches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects

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Quantitative Problem: Barton Industries eatimates its cost of common equity by using three approsches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D4, to be $1.60 and it expects dividends to grow at a constant rate g=4.4%. The firm's current common stock price, P. is $25.00. The current risk-free rate, tws, =4.2%; the market risk premium, R.P. =5.6%, and the firm's stock has a current beta, b, =1.20. Assume that the firm's cost of debt, re is 8.08\%. The firm uses a 2.6% risk premium when arriving at a balipark estimate of its cost of equaty using the bond-yield-plus-risk-premlum approach. What is the firm's cost of equity using each of these three approaches? Round your answers to two dedinal places. What is your best estimate of the firm's cost of equity

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