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You have assigned the following values to these three firms: US Bancorp Praxair Eastman Kodak Price $54.65 67.90 32.60 Upcoming Dividend $2.95 1.71 1.00 Growth

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You have assigned the following values to these three firms: US Bancorp Praxair Eastman Kodak Price $54.65 67.90 32.60 Upcoming Dividend $2.95 1.71 1.00 Growth 9.40% 11.50 14.50 Beta 1.68 2.43 1.17 Assume that the market portfolio will earn 12.90 percent and the risk-free rate is 5.70 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 US Bancorp required return Praxair required return Eastman Kodak required return Constant- Growth Model 14.80 % 14.01 % 17.57 %

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