a. Peach tree Trading Company is expected to have EPS in the upcoming year of $8. The expected RO is 15.75%. An appropriate required return on the stock is 12.75%. If the firm has a plowback ratio of 65%, its intrinsic value should be b. Porsche N.A. is expected to pay a dividend of $5.7 in the upcoming year. Dividends are expected to grow at the rate of 3.7% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 8.5%. Investors use the CAPM to compute the required rate of return on the stock and use the constant-growth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $111. Using the constant-growth DDM and the CAPM, the beta of the stock is