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

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Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risic-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $1:60 and it expects dividends to grow at: a constant rate g= 4.2\%. The firm's current common stock price, P0, is $25.00. The current risk-free rate, ru, =4.7%; the market risk premium, RPP1=5.9%, and the firm's stock has a current beta, b1=1.30. Assume that the firm's cost of debt, rd, is 5.93%. The firm usea a 2.9% 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? Round your answers to two decimal places. CAPM cost of equity: Bond yield plus risk premium: DCF cost of equity: What is your best estimate of the firm's cost of equity

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