Question $11$

$($Questions $11-14)$ Nike is expected to pay a dividend of $$1\mathrm{.}5$ in the upcoming year. Dividends are expected to grow at the rate of $10\mathrm{.}6\%$ per year. The

risk$-$free rate of return is $3\%,$ and the expected return on the market portfolio is $11\%.$ Nike's stock has a beta of $1\mathrm{.}1.$ Using the constant$-$growth DDM$,$

the intrinsic value of the stock is

$$115$

$$125$

$$110$

$$120$

Question $12$

$($Questions $11-14)$ Nike has an earnings retention ratio of $53\%.$ The stock has a market capitalization rate of $11\mathrm{.}8\%$ and an ROE of $20\%.$ What is the

stock's P$/$E ratio?

$33$

$39$

$30$

$36$