#24

Suppose the risk-free rate is 3.93% and an analyst assumes a market risk premium of 5.73%. Firm A just paid a dividend of $1.42 per share. The analyst estimates the of Firm A to be 1.42 and estimates the dividend growth rate to be 4.39% forever. Firm A has 257.00 million shares outstanding. Firm B just paid a dividend of $1.70 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.44% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A?

Submit

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