1. Suppose the risk-free rate is 2.64% and an analyst assumes a market risk premium of 6.89%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.41 and estimates the dividend growth rate to be 4.64% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.53 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.48% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A?

2. Suppose the risk-free rate is 3.32% and an analyst assumes a market risk premium of 7.84%. Firm A just paid a dividend of $1.07 per share. The analyst estimates the of Firm A to be 1.36 and estimates the dividend growth rate to be 4.77% forever. Firm A has 293.00 million shares outstanding. Firm B just paid a dividend of $1.67 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.03% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B?

Answer format: Currency: Round to: 2 decimal places.

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