You have assigned the following values to these three firms: Upcoming Dividend US Bancorp Praxair Eastman...
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You have assigned the following values to these three firms: Upcoming Dividend US Bancorp Praxair Eastman Kodak Price $ 29.80 59.15 36.50 $ 3.20 1.51 1.00 US Bancorp required return Praxair required return Eastman Kodak required return CAPM Growth 8.80% % % % 13.00 11.50 Assume that the market portfolio will earn 15.50 percent and the riskfree rate is 5.70 percent. Compute the required return for each company using both CAPM and the constantgrowth model. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Beta 1.59 2.20 0.98 ConstantGrowth Model % % You have assigned the following values to these three firms: Upcoming Dividend US Bancorp Praxair Eastman Kodak Price $ 29.80 59.15 36.50 $ 3.20 1.51 1.00 US Bancorp required return Praxair required return Eastman Kodak required return CAPM Growth 8.80% % % % 13.00 11.50 Assume that the market portfolio will earn 15.50 percent and the riskfree rate is 5.70 percent. Compute the required return for each company using both CAPM and the constantgrowth model. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Beta 1.59 2.20 0.98 ConstantGrowth Model % %
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Related Book For
Finance Applications and Theory
ISBN: 9780077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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