1. A.) Suppose the risk-free rate is 2.71% and an analyst assumes a market risk premium of 6.11%. Firm A just paid a dividend of $1.30 per share. The analyst estimates the of Firm A to be 1.29 and estimates the dividend growth rate to be 4.64% forever. Firm A has 294.00 million shares outstanding. Firm B just paid a dividend of $1.97 per share. The analyst estimates the of Firm B to be 0.76 and believes that dividends will grow at 2.56% forever. Firm B has 189.00 million shares outstanding. What is the value of Firm A?

B.)

Suppose the risk-free rate is 1.65% and an analyst assumes a market risk premium of 5.94%. Firm A just paid a dividend of $1.21 per share. The analyst estimates the of Firm A to be 1.30 and estimates the dividend growth rate to be 4.29% forever. Firm A has 287.00 million shares outstanding. Firm B just paid a dividend of $1.73 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.40% forever. Firm B has 193.00 million shares outstanding. What is the value of Firm B?