You have assigned the following values to these three firms:
Price Upcoming Dividend Growth Beta
US Bancorp $ 38.65 $ 4.85 5.80% 2.08
Praxair 80.90 1.92 21.50 1.13
Eastman Kodax 15.50 1.00 9.90 0.93
Assume that the market portfolio will earn 10.60 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. Round your final answer to 2 decimal places.)
CAMP Constant-growth model
US Bancorp required return
Praxair required return
Eastman Kodax required return