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 Price Upeoming Dividend Growth Beta S0 60 1170 1 54 0 50 Estee LauderS47 40 0 75 Kimco Realty 52 10 5 25 8 01 3 14 6 2 2 Nordstrom

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 11 percent and the risk-free rate is 4 percent.

Price Upeoming Dividend Growth Beta S0.60 1170 1.54 0.50 Estee LauderS47.40 0.75 Kimco Realty 52.10 5.25 8.01.3 14.6 2.2 Nordstrom

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