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Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium aporoach, 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-risk-premium aporoach, and the DCF model. Barton expects next year's annual dividend, Di, to be $1.60 and it expects dividends to grow at a constant rate g = 3.6%. The firm's current common stock price, Po, is $25.00. The current rtsk-free rate, fur, =4.8%, the market risk premium, RPr, = 6.0%, and the firm's stock has a current beta, b,1.35. Assume that the firm's cost of debt, td, is 4.105. The firm uses a 3.0% risk premium when arriving at a ballpark estimate of its cost of equity using the bond-yleld-plus-risk-premium opproach. What is the firm's cost of equity using each of these three approaches? Round your answers to two decimal places. CAMM cost of equity bond yeid plus rikk. premium: DCF cost of equity: What is yeur best estimate of the firm's cost of equify

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