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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $36.00 $.50 $11.40% .92 Kimco Realty $75.00 $1.58

You have assigned the following values to these three firms:

Price Upcoming Dividend Growth Beta

Estee Lauder $36.00 $.50 $11.40% .92

Kimco Realty $75.00 $1.58 $17.00 1.28

Nordstrom $11.00 $2.00 $8.80 1.24

Assume that the market portfolio will earn 17.20 percent and the risk-free rate is 8.20 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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