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You have assigned the following values to these two firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 46.00 $ 1.60 15.00 % 0.76 Kimco

You have assigned the following values to these two firms:

Price Upcoming Dividend Growth Beta
Estee Lauder $ 46.00 $ 1.60 15.00 % 0.76
Kimco Realty 55.00 1.77 15.00 1.67

Assume that the market portfolio will earn 10.60 percent and the risk-free rate is 3.60 percent. Compute the required return for each company using the CAPM and the expected return using the constant-growth model.

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