The DCF approsch for estimated the cosk of retained eamings, fu, is given as follons: ry=T4=DVP9+Expected9 thvestors expect to recelve a divisend yield, 4D2, plus a capital gain, 9 , for a tokal expected return, in , this expected return is aiso equal to the required return. It's easy to calculate the dividend yleid; but because stock prices fluctuate, the yield varies from day to doy, which leads to fluctuations in the DCF cost of equity, Also, it is dificult to determine the proper growth especally if past growth retes are not expected to continue in the future. However, we can use growh rates as projected by securlity analysts, who regularly forecast groweh rates of eominos and ovidends. Which method should be used to estimate ra? If management has confidence in one method, it would probsbly use that method's estimate. Ccherwise, it might use some aeighted average of the three methods, Judgment is important and comes into play here, as is true for most decisions in finance. Qusatitative Problemt Barton thdustries ertimates its cost of common equity by using three approsches: the CapM, the bond-yield-plus.risk-premium approach, and the DCF model, Barton expects next year's annual dividend, D4, to be $2.40 and it expects dividends to grow at a constant rate g=4.4$. The firm's current common stock price, P. is s2s. oo. The current riskifree premium when ariving at a bollpark estimate of its cost of equity using the bond-vield-plus-risk-premium approach. What is the firm's cosk of equity using each of these three sporoaches? Round your antwers to two decmal places. CAMM cost of equity: Bond yele plus nisk premiumi bCF cost of nquty: What is your bect euimate of the firm's cost of equity