You have assigned the following values to these three firms Upcoming Dividend $0.50 1.58 2.00 Estee Lauder Kinco Realty Nordstrom Price $36.00 75.00 11.00 Estee Lauder required return Kimco Realty required return Nordstrom required return CAPM Growth % % % 11.40% Assume that the market portfolio will earn 17.20 percent and the risk-free rate is 8.20 perce company using both CAPM and the constant-growth model. (Do not round intermediate ca to 2 decimal places.) 17.00 8.80 Beta 0.92 1.28 1.24 Constant-Growth Model % % %

You have assigned the following values to these three firms Upcoming Dividend $0.50 1.58 2.00 Estee Lauder Kinco Realty Nordstrom Price $36.00 75.00 11.00 Estee Lauder required return Kimco Realty required return Nordstrom required return CAPM Growth % % % 11.40% Assume that the market portfolio will earn 17.20 percent and the risk-free rate is 8.20 perce company using both CAPM and the constant-growth model. (Do not round intermediate ca to 2 decimal places.) 17.00 8.80 Beta 0.92 1.28 1.24 Constant-Growth Model % % %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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