Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $2.40 and it expects dividends to grow at a constant rate g= 4.2%. The firm's current common stock price, P0, is $20.00. The current risk-free rate, rRF, =4.9%; the market risk premium, RPmM, =6.4%, and the firm's stock has a current beta, b, =1.15. Assume that the firm's cost of debt, rd, is 16.74%. The firm uses a 3.4% risk premium when arriving at a approaches? Round your answers to two decimal places. CAPMcostofequity:Bondyieldplusriskpremium:%% DCF cost of equity: What is your best estimate of the firm's cost of equity? -Select- The best estimate is the highest percentage of the three approaches. The best estimate is the average of the three approaches. The best estimate is the lowest percentage of the three approaches