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You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 49.00 $ 1.80 11.50 % 0.85 Kimco
You have assigned the following values to these three firms: |
Price | Upcoming Dividend | Growth | Beta | ||||||||||||
Estee Lauder | $ | 49.00 | $ | 1.80 | 11.50 | % | 0.85 | ||||||||
Kimco Realty | 68.00 | 1.72 | 13.00 | 1.69 | |||||||||||
Nordstrom | 9.00 | 1.00 | 9.80 | 1.27 | |||||||||||
Assume that the market portfolio will earn 15.50 percent and the risk-free rate is 5.50 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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