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some of them. Which existing assets and that Callahan Technologies Inc, are expected tarnings, dividends, and common stock price of currently sells for $22.00 per

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some of them. Which existing assets and that Callahan Technologies Inc, are expected tarnings, dividends, and common stock price of currently sells for $22.00 per are expected to grow, dividends, and common stock price of dend at the end of the current year. its last dividend wer year. Callahan's common stock a. Using the DCF approand it will pay a $2.12 divi- a. Using the DCF approach, what is its cost of common equity? 13%, what will be the firm's risk-free rate is 6%, and the average return on the market is c. If the firm's bonds earn a return of 11%, based equity using the CAPM approach? approach, what will be r ? Use the midpoint of the bond-yield-plus-risk-premium Section 10-5 in your calculations. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity

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