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Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms Pr ice $36.55 64.75 24.95 coming Dividend $1.60 1.12
Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms Pr ice $36.55 64.75 24.95 coming Dividend $1.60 1.12 1.00 Growth 10.0% 11.0 Beta US Bancorp Praxair Eastman Kodak 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.) Constant Growth Model CAPM US Bancorp required return Praxair required return Eastman Kodak required return
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