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Problem 10-19 Spreadsheet Problem: Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: A B C D E 1 Expected

Problem 10-19 Spreadsheet Problem: Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: A B C D E 1 Expected Dividend Current Price Growth Estimate Beta 2 Ester Lauder $ 1.80 $ 31.00 14.00% 0.73 3 Kimbo Realty $ 1.37 $ 53.00 13.00% 1.65 4 Nordstream $ 0.70 $ 12.20 13.00% 1.86 Assume that the market portfolio will earn 11.10 percent and the risk-free rate is 6.60 percent. Compute the required return for each company using both CAPM and the constant-growth model. Note: Do not round intermediate calculations and round your final answers to 2 decimal places.

image text in transcribed Problem 10-19 Spreadsheet Problem: Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: Assume that the market portfolio will earn 11.10 percent and the risk-free rate is 6.60 percent. Compute the required return for each company using both CAPM and the constant-growth model. Note: Do not round intermediate calculations and round your final answers to 2 decimal places

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