[Solved] Adidas stock has a beta of 1.6. The risk-

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Adidas stock has a beta of 1.6. The risk-free rate is 2.8% and the expected return on the market portfolio is 9%. The company has

Adidas stock has a beta of 1.6. The risk-free rate is 2.8% and the expected return on the market portfolio is 9%. The company has just paid an annual dividend of $0.29. Dividends are expected to grow by 1% per year.

What is the appropriate discount rate?

What is the intrinsic value of the stock?

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