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The cost of equity using the discounted cash flow or dividend growth) approach Johnson Enterprises's stock is currently selling for $25.67 per share, and the firm expects its per share dividend to be $2.35 in one year. Analyst project the firm's growth rate to be constant at 7.279. Btimating the cost of equity using the discounted cash flow cor dividend growth approach, what is Johnson's cost of internal equity? 0 16.4296 20.5396 22.17% 15.60% Estimating growth rates It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of costing equity using the DC or DG approach In general, there are the available methods to generate such an estimate • Carry forward a historical resourowth rate and apply it to the future - Locate and apply an expected future growth rate prepared and shed by security analysts. • Use the ention growth model Suppose Johnson Currently distributing 75% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 14 Johnson's estimated growth rate is