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#26 c answered Suppose the risk-free rate is 3.86% and an analyst assumes a market risk premium of 7.92%. Firm A just paid a dividend
#26 c answered Suppose the risk-free rate is 3.86% and an analyst assumes a market risk premium of 7.92%. Firm A just paid a dividend of $1.32 per share. The analyst estimates the 3 of Firm A to be 1.35 and estimates the dividend growth rate to be 4.90% forever. Firm A has 294.00 million shares outstanding. Firm B just paid a dividend of $1.73 per share. The analyst estimates the B of Firm B to be 0.85 and believes that dividends will grow at 2.65% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B? 4,114,271,971.80 Submit Answer format: Currency: Round to: 2 decimal places. correct Points: 0.7 More Details Attempts Remaining: 1 #27 answered correct Suppose the risk-free rate is 2.60% and an analyst assumes a market risk premium of 7.91%. Firm A just paid a dividend of $1.42 per share. The analyst estimates the B of Firm A to be 1.48 and estimates the dividend growth rate to be 4.21% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.79 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.21% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm A? Points: 0.7 More Details Attempts Remaining: 1 3,781,235,203.23 Submit Answer format: Currency: Round to: 2 decimal places
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