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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 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-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D3, to be $2.20 and it expects dividends to grow at a constant rate g=3.0%. The firm's current common stock price, Po, is \$20.00. The current risk-free rate, ns=4.1%; the market risk premium, RPM,=5.8%, and the firm's stock has a current beta, b,=1.20, Assume that the firm's cost of debc, re, is 14.14%, The firm uses a 2.8% 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 yleld plus risk premium: DCF cost of equity: What is your best estimate of the firm's cost of equity

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