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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 50.00 $ 1.70 16.50 % 0.74 Kimco
You have assigned the following values to these three firms:
Price | Upcoming Dividend | Growth | Beta | ||||||||||||
Estee Lauder | $ | 50.00 | $ | 1.70 | 16.50 | % | 0.74 | ||||||||
Kimco Realty | 82.00 | 1.68 | 11.00 | 1.51 | |||||||||||
Nordstrom | 10.00 | 0.60 | 13.00 | 1.02 | |||||||||||
Assume that the market portfolio will earn 15.50 percent and the risk-free rate is 6.40 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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