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Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms US Bancorp Praxain Eastman Kodak Price $32.60 76.85 35.40
Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms US Bancorp Praxain Eastman Kodak Price $32.60 76.85 35.40 oming Dividend $4.30 1.82 1.00 Growth 6.00% 20.00 10.10 Beta 2.07 1.89 1.21 Assume that the market portfolio will earn 9.80 percent and the risk-free rate is 3.00 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.) Constant- Growth Model CAPM US Bancorp required return Praxair required return Eastman Kodak required return
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