Question: 10-30 Required Return Using the information in the table, compute the required return for each company using both CAPM and the constant growth model. Compare
10-30 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 11 percent and the risk-free rate is 4 percent. (LG10-3, LG10-7) Price Growth Beta Estee Lauder Kimco Realty Nordstrom Upcoming Dividend $0.60 1.54 0.50 $47.40 52.10 5.25 0.75 11.7% 8.0 14.6 7 10-31 Spreadsheet Prohl
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