Question
ou have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 55.00 $ 1.70 17.60 % 1.03 Kimco
ou have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 55.00 $ 1.70 17.60 % 1.03 Kimco Realty 54.00 1.39 17.00 1.43 Nordstrom 14.00 1.00 12.00 1.23 Assume that the market portfolio will earn 11.20 percent and the risk-free rate is 6.20 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) CAPM Constant-growth model Estee Lauder required return % % Kimco Realty required return % % Nordstrom required return % %
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