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2. Suppose the risk-free rate is 1.30% and an analyst assumes a market risk premium of 5.25%. Firm A just paid a dividend of $1.17

2. Suppose the risk-free rate is 1.30% and an analyst assumes a market risk premium of 5.25%. Firm A just paid a dividend of $1.17 per share. The analyst estimates the of Firm A to be 1.36 and estimates the dividend growth rate to be 4.05% forever. Firm A has 298.00 million shares outstanding. Firm B just paid a dividend of $1.98 per share. The analyst estimates the of Firm B to be 0.87 and believes that dividends will grow at 2.07% forever. Firm B has 192.00 million shares outstanding. What is the value of Firm A?

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