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Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 42.60

Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 42.60 $ 2.40 9.60 % 1.74 Praxair 80.85 1.15 13.00 3.01 Eastman Kodak 26.50 2.00 12.50 1.11 Assume that the market portfolio will earn 9.00 percent and the risk-free rate is 2.20 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.)

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