Compute required return for company-constant-growth model

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Reference no: EM131351721

You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 37.90 $ 2.70 8.40 % 1.54 Praxair 45.25 1.34 9.00 2.36 Eastman Kodak 23.65 2.00 14.00 1.16 Assume that the market portfolio will earn 11.00 percent and the risk-free rate is 4.60 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 US Bancorp required return % % Praxair required return % % Eastman Kodak required return % %

Reference no: EM131351721

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