e$.$ The risk$-$free rate on long$-$term Treasury bonds is $6\mathrm{.}04\%.$ Assume that the market risk premium is $5\%.$ What is the expected return on the market? Now use the SML equation to calculate the two companies' required returns.

Market risk premium $($RPM$)=5\mathrm{.}000\%$

Risk$-$free rate $=6\mathrm{.}040\%$

Expected return on market $=$ Risk$-$free rate $+$ Market risk premium

$=6\mathrm{.}040\%+5\mathrm{.}000\%$

$=11\mathrm{.}040\%$

Required return $=$

Goodman:

Required return $=$

$=$

Landry:

Required return $=$

$=$