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#26 Suppose the risk-free rate is 3.33% and an analyst assumes a market risk premium of 5.27%. Firm A just paid a dividend of $1.38
#26 Suppose the risk-free rate is 3.33% and an analyst assumes a market risk premium of 5.27%. Firm A just paid a dividend of $1.38 per share. The analyst estimates the of Firm A to be 1.36 and estimates the dividend growth rate to be 4.57% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.58 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.53% forever. Firm B has 189.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. #27 The risk-free rate is 3.99% and the market risk premium is 9.38%. A stock with a of 0.98 just paid a dividend of $2.70. The dividend is expected to grow at 23.47% for five years and then grow at 3.28% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places
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