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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 45.00 $ 1.80 11.00 % 0.95 Kimco
You have assigned the following values to these three firms:
Price | Upcoming Dividend | Growth | Beta | ||||||||||||
Estee Lauder | $ | 45.00 | $ | 1.80 | 11.00 | % | 0.95 | ||||||||
Kimco Realty | 62.00 | 1.91 | 14.00 | 1.41 | |||||||||||
Nordstrom | 12.00 | 0.60 | 6.40 | 1.70 | |||||||||||
Assume that the market portfolio will earn 11.70 percent and the risk-free rate is 5.70 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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