The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3%, per year. Callahan's common stock currently sells for $30.00 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 0.9, the risk-free rate is 6%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

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5) see pic

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3%, per year. Callahan's common stock currently sells
for $30.00 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year.
a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
b. If the firm's beta is 0.9, the risk-free rate is 6%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM
approach? Round your answer to two decimal places.
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The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3%, per year. Callahan's common stock currently sells for $30.00 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 0.9, the risk-free rate is 6%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

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