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I have tried this question multiple times and I know it is partially correct but one of my answers is wrong and I cannot figure
I have tried this question multiple times and I know it is partially correct but one of my answers is wrong and I cannot figure out why! I used the CAPM and CG equations.
You have assigned the following values to these three firms: Company Price Upcoming dividend Growth Beta $ 0.40 12.70% 0.95 Xcel Energy $ 45.40 Whirlpool $ 35.70 Kinder Morgan $ 8.20 7.80% 1.03 $ 0.80 $ 0.30 11.05% 1.80 Assume that the market portfolio will earn 10.00 percent and the risk-free rate is 4.00 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 and do not include a % symbol.) Type your answers in the table below Company CAPM Constant-growth model Xcel Energy 9.7 13.58 10.18 10.04 Whirlpool Kinder Morgan 14.8 14.71 You have assigned the following values to these three firms: Company Price Upcoming dividend Growth Beta $ 0.40 12.70% 0.95 Xcel Energy $ 45.40 Whirlpool $ 35.70 Kinder Morgan $ 8.20 7.80% 1.03 $ 0.80 $ 0.30 11.05% 1.80 Assume that the market portfolio will earn 10.00 percent and the risk-free rate is 4.00 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 and do not include a % symbol.) Type your answers in the table below Company CAPM Constant-growth model Xcel Energy 9.7 13.58 10.18 10.04 Whirlpool Kinder Morgan 14.8 14.71Step by Step Solution
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