#27

Suppose the risk-free rate is 2.32% and an analyst assumes a market risk premium of 7.86%. Firm A just paid a dividend of $1.08 per share. The analyst estimates the of Firm A to be 1.48 and estimates the dividend growth rate to be 4.49% forever. Firm A has 264.00 million shares outstanding. Firm B just paid a dividend of $1.82 per share. The analyst estimates the of Firm B to be 0.82 and believes that dividends will grow at 2.27% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm A?

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