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Intro Adidas stock has a beta of 1.7. The risk-free rate is 2.8% and the expected return on the market portfolio is 10%. The company

Intro

Adidas stock has a beta of 1.7. The risk-free rate is 2.8% and the expected return on the market portfolio is 10%. The company has just paid an annual dividend of $0.25. Dividends are expected to grow by 3% per year.

Attempt 1/1 for 10 pts.

Part 1

What is the appropriate discount rate?

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