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 US Bancorp Praxair Eastman Kodak2 Price Upcoming Dividend Growth Beta $36 55 64 75 4 95 10 0 11 0 4 5 1 8 2 4 0 5 1 12 1 00

Question: 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

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 will earn 12 percent and the risk-free rate is 3.5 percent.

US Bancorp Praxair Eastman Kodak2 Price Upcoming Dividend Growth Beta $36.55 64.75 4.95 10.0% 11.0 4.5 1.8 2.4 0.5 1.12 1.00

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