Company name: Walgreens Boots Alliance, Inc. (WBA)

Using the companys Return on Equity (ROE) and dividend payout ratio, estimate its Sustainable Rate of Growth. Is this rate consistent with the companys recent history, managements stated objectives, and analysts forecasts?

Estimate the companys cost of equity using: the Dividend Growth Model and the Security Market Line (SML) approach. Which method is more appropriate for the company? Compare the appropriate cost of equity to the ROE.