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Compute the required return for company capm

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Reference no: EM132703725

You have assigned the following values to these three firms:

Company Price Upcoming dividend Growth Beta

Xcel Energy $ 45.40$ 0.40 12.70% 0.95

Whirlpool$ 35.70$ 0.80 7.80% 1.03

Kinder Morgan 8.20 $ 0.30 11.05% 1.80

Assume that the market portfolio will earn 10.00 percent and the risk-free rate is 4.00 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 and do not include a % symbol.)

Reference no: EM132703725

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