The future earnings, dividends, and common stock price of Callahan Technologies Inc.are expected to grow 6% per year.Callahan's common stock currently sells for $22.00 per share; its last dividend was $2.00 and it will pay a $2.12 dividend at the end of the current year.

a.Using the DCF approach, what is its cost of common equity?

b.If the firm's beta is 1.2, the risk-free rate is 6%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach?

c.If the firm's bonds earn a return of 11%, based on the bond-yield-plus-premium Section 10-5 in your calculations.

d.If you have equal confidence in the inputs used to the three approaches, what is your estimate of Callahan's cost of common equity?