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Walgreens (stock symbol: WBA) has a current dividend ( D0 )of $1.92 and Beta of 0.71. The riskfree rate is 3.8% and the average market

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Walgreens (stock symbol: WBA) has a current dividend ( D0 )of $1.92 and Beta of 0.71. The riskfree rate is 3.8% and the average market return is 7.5%. Calculate the required rate of return (k) for Walgreens according to the CAPM model. 2. Decide about a growth rate for your stock (g) explain briefly why you are considering that it is going to grow at that rate in the next few years. 3. Valuate the company according to the Constant Growth dividend model (value= D1/k-g) 4. Make a recommendation to either buy or not buy the stock comparing your valuation with the current price of the stock (search for the current stock price in Yahoo Finance)

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