supervisor sees your potential as a future analyst for a large brokerage firm. (You haven't told her you want to work for her firm after graduating. But that's okay; everything will be in due time.) Thus, she gave you an assignment to help her analyze the Adidas (ADDDF) stock. Your supervisor recommends determining prices based on the dividend-discount model and discounted free cash flow valuation methods. Adidas has debt, but for this analysis, your supervisor asked you to assume it doesn't have any. Assume that Adidas's risk premium is 5%, so add that to the yield on long-term Treasuries to get Adidas's cost of capital. You are ready for the challenge but also are a little concerned because your supervisor told you that these two methods can result in widely differing estimates when applied to real data. You are really hoping that the two methods will lead to similar conclusions

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Analyzing Adidas ADDDF with Discounted Valuation Methods Absolutely you can tackle this challenge Heres how to analyze Adidas using the two valuation ... View the full answer