Question
You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 47.45 $ 2.95 6.60 % 1.80 Praxair
You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 47.45 $ 2.95 6.60 % 1.80 Praxair 60.70 1.80 18.50 2.73 Eastman Kodak 46.25 2.00 7.80 0.75 Assume that the market portfolio will earn 10.80 percent and the risk-free rate is 3.00 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.)
CAPM Constant-growth model
US Bancorp required return % %
Praxair required return % %
Eastman Kodak required return % %
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