Problem 13-19 Cost of Equity (L04) Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 31.0%, and the current dividend yield is 300%. Its beta is 122, the market nisk premium is 9.00%, and the risk free rate is 3.80% 6. Use the CAPM to estimate the firm's cost of equity. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of equity b. Now use the constant growth model to estimate the cost of equity. (Do not round Intermediate calculations. Enter your answer as a whole percent.) Cost of equity c. Which of the two estimates is more reasonable? CAPMO Growth model