1. Suppose the risk-free rate is 2.43% and an analyst assumes a market risk premium of 7.65%. Firm A just paid a dividend of $1.35 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.93% forever. Firm A has 267.00 million shares outstanding. Firm B just paid a dividend of $1.55 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.92% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm A?

2. Suppose the risk-free rate is 2.32% and an analyst assumes a market risk premium of 6.48%. Firm A just paid a dividend of $1.22 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.08% forever. Firm A has 300.00 million shares outstanding. Firm B just paid a dividend of $1.80 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.96% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm B?