1a)Suppose the risk-free rate is 1.90% and an analyst assumes a market risk premium of 7.46%. Firm A just paid a dividend of $1.09 per share. The analyst estimates the of Firm A to be 1.43 and estimates the dividend growth rate to be 4.99% forever. Firm A has 264.00 million shares outstanding. Firm B just paid a dividend of $1.71 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.43% forever. Firm B has 188.00 million shares outstanding. What is the value of Firm B?

b.The risk-free rate is 2.25% and the market risk premium is 7.08%. A stock with a of 1.80 just paid a dividend of $1.69. The dividend is expected to grow at 24.69% for three years and then grow at 3.32% forever. What is the value of the stock?