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You have assigned the following values to these three firms coming Dividend 52.60 Bat 13 US Bancorp Praxur Eastwa Indak Price 329 50 75 14.30
You have assigned the following values to these three firms coming Dividend 52.60 Bat 13 US Bancorp Praxur Eastwa Indak Price 329 50 75 14.30 Growth 40% 14.00 5.13 1.00 0.5 Assume that the market portfolio will camn 1120 percent and the risk mate is 300 percent Compute the required retum lorench conipany 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 15 Banc de Praca que elum Eimati Kudatetim You have assigned the following values to these three firms US Bancar Praxair Eastman Kodak Price 529.50 66.75 44.30 Upcoming Dividend 52.00 1.461 1.00 Growth 6:40 14.00 5.30 Bet 1.83 1.62 0.95 Assume that the market portfolio will earn 11 20 percent and the risk-free rate is 300 percent Compute the required return for each company usag 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 5 US Bancorp required retum Praxairoqunedre Eastman Kodak requeretuin US Bancorp Praxair Eastman Kodak Price $29.50 66.75 44.30 Upcosing Dividend $2.60 1.48 1.00 Growth 6.40 14.00 5.80 Beta 1.83 1.62 0.85 Assume that the market portfolio will earn 11.20 percent and the risk-free rate is 3.00 percent. Compute the required return for each company using both CAPM and the constant-growth model (D Intermediate calculations and round your final answers to 2 decimal places.) CAPM Constant- Growth Model % 9 US Bancorp required retum Praxait required return Eastman Kodak required return % % % 26
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