You have assigned the following values to these three firms:
Price Upcoming Dividend Growth Beta
US Bancorp $ 49.15 $ 3.70 7.60 % 1.85
Praxair 53.45 1.57 15.00 2.46
Eastman Kodak 14.85 1.00 7.50 0.94
Assume that the market portfolio will earn 10.60 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 requirement return % %