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129 Suppose the risk-free rate is 1.08% and an analyst assumes a market risk premium of 7.64%. Firm A just paid a dividend of $1.26

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129 Suppose the risk-free rate is 1.08% and an analyst assumes a market risk premium of 7.64%. Firm A just paid a dividend of $1.26 per share. The analyst estimates the of Firm A to be 1.37 and estimates the dividend growth rate to be 4.26% forever. Firm A has 299.00 million shares outstanding. Firm B just paid a dividend of $1.68 per share. The analyst estimates the B of Firm B to be 0.80 and believes that dividends will grow at 2.72% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. #31 Caspian Sea Drinks is considering buying Se J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.68 million and create incremental cash flows of $800,041.00 each year for the next five years. The cost of capital is 11.52%. What is the net present value of the J-Mix 2000? Submit Answer format: Currency: Round to: 2 decimal places. #32 A co-worker pitches a project to you that will last one year. The project will require the firm to invest $100,000.00 today, and the co-worker expects it to return $115,000.00 in one year. If your cost of capital is 12.00%, what is the NPV of this investment? Submit Answer format: Currency: Round to: 2 decimal places

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