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You have assigned the following values to these three firms: Upcoming Dividend Estee Lauder Kinco Realty Nordstrom Price $33.00 70.00 9.50 $0.70 1.21 2.00

You have assigned the following values to these three firms: Upcoming Dividend Estee Lauder Kinco Realty

You have assigned the following values to these three firms: Upcoming Dividend Estee Lauder Kinco Realty Nordstrom Price $33.00 70.00 9.50 $0.70 1.21 2.00 Growth 10.50% 15.00 5.00 Beta 0.69 1.56 0.99 Assume that the market portfolio will earn 15.90 percent and the risk-free rate is 4.90 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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The formula to calculate the required value using the CAPM model is given below Expected returnRfBetaRmRf Calculate the required return for EL firm us... blur-text-image

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