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1. Suppose the risk-free rate is 3.89% and an analyst assumes a market risk premium of 5.49%. Firm A just paid a dividend of $1.22
1. Suppose the risk-free rate is 3.89% and an analyst assumes a market risk premium of 5.49%. Firm A just paid a dividend of $1.22 per share. The analyst estimates the of Firm A to be 1.49 and estimates the dividend growth rate to be 4.62% forever. Firm A has 281.00 million shares outstanding. Firm B just paid a dividend of $1.95 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.20% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm B?
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