The DCr aporeach for estimated the cest of retained earnings, if is given as follows: rs=f~s=D3/Pe+ExpectedO . this expected return bs aso equal to the required return, It's easy to calculate ithe methods. Judgment is important and comes into play here, as is true for most dedsiont in fricarce. CAPM cost of equity: bond yold plus risk premium: DCF cost of equity: What is your best eatimate of the firm's cost of equity