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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 Praxair Eautman Kodak Price $36.55 64.75 24.95

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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 Praxair Eautman Kodak Price $36.55 64.75 24.95 Upcoming Dividend $1.60 1.12 1.00 Growt 10.08 11.0 4.5 Beta 119 2.4 0.5 Assume that the market portfolio will earn 12 percent and the risk free rate is 3.5 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.) CAPM Constant- Growth Model 976 US Bancorp required return Praxair required retum Eastman Kodak required return

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