1. You have assigned the following values to these three firms:

	Price			Upcoming Dividend							Growth			Beta
US Bancorp	$	54.70				$	3.60				9.20	%		1.65
Praxair		47.95					1.50				15.00			2.52
Eastman Kodak		33.45					2.00				10.50			0.52

Assume that the market portfolio will earn 12.50 percent and the risk-free rate is 5.60 percent.

Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

2. Hastings Entertainment has a beta of 0.29. If the market return is expected to be 13.40 percent and the risk-free rate is 4.40 percent, what is Hastings required return? (Round your answer to 2 decimal places.)