About the camp constant-growth model

Assignment Help Financial Management

Reference no: EM131966861

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

Reference no: EM131966861

Questions Cloud

What is the pretax cost of debt and aftertax cost of debt : what is the pretax cost of debt? what is the aftertax cost of debt? Which is more relevant, the pretax or the aftertax cost of debt?

Relation-ship between chronic pain : Chronic pain is often de?ned as pain that occurs constantly and ?ares up frequently, is not caused by cancer, and is experienced at least once a month

Determining the valuable tool for auditors : Statistics has become a valuable tool for auditors, especially where large inventories are involved. It would be costly and time consuming

What kinds of corporate procedures will you put : What kinds of corporate procedures will you put in place to manage and ensure the safety and security needs of the banking industry resources.

About the camp constant-growth model : Compute the required return for each company using both CAPM and the constant-growth model.

New treatment for congestive heart failure : A study was conducted of 90 adult male patients following a new treatment for congestive heart failure

Correlation and the test statistic for the correlation test : Calculate by hand the correlation and the test statistic for the correlation test.

Calculate expected frequencies under the null hypothesis : a) Calculate expected frequencies under the null hypothesis of independence. b) How many degrees of freedom are available for testing this hypothesis?

What is best estimate of the stock current market value : The required return on this stock is 15%. What is the best estimate of the stock’s current market value?

User Account

All Pages