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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 42.00 $ 0.90 17.00 % 0.83 Kimco
You have assigned the following values to these three firms: |
Price | Upcoming Dividend | Growth | Beta | ||||||||||||
Estee Lauder | $ | 42.00 | $ | 0.90 | 17.00 | % | 0.83 | ||||||||
Kimco Realty | 67.00 | 1.70 | 12.00 | 1.73 | |||||||||||
Nordstrom | 14.50 | 2.00 | 7.00 | 1.14 | |||||||||||
Assume that the market portfolio will earn 13.30 percent and the risk-free rate is 6.30 percent. |
Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
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