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You have assigned the following values to these three firms: Estee Lauder Kimco Realty Nordstrom Price $43.00 43.00 6.00 Upcoming Dividend $1.80 1.38 1.00 Growth
You have assigned the following values to these three firms: Estee Lauder Kimco Realty Nordstrom Price $43.00 43.00 6.00 Upcoming Dividend $1.80 1.38 1.00 Growth 18.00% 8.00 9.00 Beta 0.72 1.53 1.78 Assume that the market portfolio will earn 12.50 percent and the risk-free rate is 3.80 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.) CAPM Constant- Growth Model Estee Lauder required return Kimco Realty required return Nordstrom required return
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