Question: Calculate the company's beta using regression analysis. Based on the beta and assuming (risk free rate as 3% and market risk premium of 8%, compute
Calculate the company's beta using regression analysis. Based on the beta and assuming (risk
free rate as 3% and market risk premium of 8%, compute the stocks expected return using CAPM.
Then using Valueline data, calculate the company's intrinsic value using the dividend discount
model. Clearly identify the assumptions underlying your calculations, and provide a rationale for
your valuation model choice.
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