Compute the required return for each company

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Reference no: EM131609604

You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta US Bancorp $ 43.85 $ 1.15 8.60 % 1.51 Praxair 40.20 1.31 15.50 2.80 Eastman Kodak 20.60 2.00 10.20 0.92 Assume that the market portfolio will earn 12.00 percent and the risk-free rate is 4.40 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.)

US Bancorp required return % %

Praxair required return % %

Eastman Kodak required return %

Reference no: EM131609604

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