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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $37.00 $1.60 12.00% 0.99 Kimco Realty 65.00 1.81

You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $37.00 $1.60 12.00% 0.99 Kimco Realty 65.00 1.81 14.00 1.82 Nordstrom 6.80 0.70 5.00 1.61 -------------------------------------------------------------------------------- Assume that the market portfolio will earn 10.10 percent and the risk-free rate is 2.10 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 Estee Lauder required return % % Kimco Realty required return % % Nordstrom required return % %

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