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6 You have assigned the following values to these three firms: 6 points US Bancorp Praxair Eastman Kodak Price $47.10 48.40 19.80 Upcoming Dividend $3.55

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6 You have assigned the following values to these three firms: 6 points US Bancorp Praxair Eastman Kodak Price $47.10 48.40 19.80 Upcoming Dividend $3.55 1.79 2.00 Growth 7.80% 15.50 10.40 Beta 1.83 1.18 2.14 Assume that the market portfolio will earn 13.80 percent and the risk-free rate is 6.00 p Compute the required return for each company using both CAPM and the constant-grc calculations and round your final answers to 2 decimal places.) Answer is complete but not entirely correct. CAPM Constant- Growth Model 15.52 X % 19.18 % % 20.27 15.20 % US Bancorp required return Praxair required return Eastman Kodak required return BIO 22.69 % 20.50 %

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