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1) Suppose the risk-free rate is 1.54% and an analyst assumes a market risk premium of 5.16%. Firm A just paid a dividend of $1.06

1) Suppose the risk-free rate is 1.54% and an analyst assumes a market risk premium of 5.16%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the of Firm A to be 1.38 and estimates the dividend growth rate to be 4.75% forever. Firm A has 290.00 million shares outstanding. Firm B just paid a dividend of $1.69 per share. The analyst estimates the of Firm B to be 0.84 and believes that dividends will grow at 2.20% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm A?

2) Suppose the risk-free rate is 2.33% and an analyst assumes a market risk premium of 5.64%. Firm A just paid a dividend of $1.08 per share. The analyst estimates the of Firm A to be 1.42 and estimates the dividend growth rate to be 4.47% forever. Firm A has 267.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.19% forever. Firm B has 183.00 million shares outstanding. What is the value of Firm B?

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