Question: Required Return Using the information in the table, compute the required return for each company using both CAPM and the constant-growth model. Compare and discuss

Required Return Using the information in the table, compute the required return for each company using both CAPM and the constant-growth model. Compare and discuss the results. Assume that the market portfolio will earn 12 percent and the risk-free rate is 3.5 percent. (LG10-3, LG10-7)

Price Upcoming Dividend Growth Beta US Bancorp $36.55 $1.60 10.0% 1.8 Praxair

Price Upcoming Dividend Growth Beta US Bancorp $36.55 $1.60 10.0% 1.8 Praxair 64.75 1.12 11.0 2.4 Eastman Kodak 24.95 1.00 4.5 0.5

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