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Problem 10-29 Required Return (LG10-3, LG10-7) You have assigned the following values to these three firms Price us Banoorp Praxair Eastaan Xodak 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 Price us Banoorp Praxair Eastaan Xodak 36.55 64.75 24.95 $1.60 1.12 1.00 10.0 11.0 4.5 1.8 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) CAPMGrowth Model US Bancorp required reburn Praxair required return Eastman Kodak required retur Prev 11 of 25 E Next 4

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