Question: Chapter 10 Pre-Built Problems Question 11 (of 11) value: 10.00 points Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these
Chapter 10 Pre-Built Problems Question 11 (of 11) value: 10.00 points Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: Upcoming Dividend $ 1.90 Growth Beta 7.20 % 1.76 3.00 3.14 5.50 1.19 Price US Bancorp Praxair Eastman Kodak $39.30 35.55 38.10 1.65 2.00 Assume that the market portfolio will earn 15.20 percent and the risk-free rate is 8.00 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intormediate calculations and round your final answers to 2 decimal places.) CAPM constant-growth model US Bancorp required return Praxair required return Eastman Kodak required return
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