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TORTY The COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year.

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TORTY The COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. a Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not ro % b. If the firm's beta is 1.40, the risk-free rate is 6%, and the average return on the market is 12%, what will be the % C. If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs? Us d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost % w peryen Calhes common stock curent alle for $22.00 per sharest dividend w 12.00 and $2.12 dient the end of the current mal place. Do not rmand your intermediate calculation 12. what will be the dire's met een man nuty and the camepewacht Reund vous vous to two decimal lace each what will be in the midpoint of the rak premium range died in flection 10-5 in your cation. Nound your answer to the decimal places imate of Callahan's cost of common tynd our answer to the decimal places. Dund your mediate coletion

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