Compute the required return for each company using both


You have assigned the following values to these three firms: Price Upcoming Dividend Growth Beta Estee Lauder $ 48.00 $ 0.70 8.70 % 0.97 Kimco Realty 39.00 1.69 13.00 1.36 Nordstrom 7.00 0.80 7.00 1.09 Assume that the market portfolio will earn 15.40 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.) CAPM Constant-growth model Estee Lauder required return % % Kimco Realty required return % % Nordstrom required return % %

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Financial Management: Compute the required return for each company using both
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