1) a. The risk-free rate is 1.88% and the market risk premium is 7.97%. A stock with a of 1.25 just paid a dividend of $1.07. The dividend is expected to grow at 22.78% for three years and then grow at 4.30% forever. What is the value of the stock?

b. Suppose the risk-free rate is 1.24% and an analyst assumes a market risk premium of 5.30%. Firm A just paid a dividend of $1.19 per share. The analyst estimates the of Firm A to be 1.27 and estimates the dividend growth rate to be 4.40% forever. Firm A has 273.00 million shares outstanding. Firm B just paid a dividend of $1.77 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.79% forever. Firm B has 193.00 million shares outstanding. What is the value of Firm B?