Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#27 unanswered Suppose the risk-free rate is 1.41% and an analyst assumes a market risk premium of 7.94%. Firm A just paid a dividend of

image text in transcribed

#27 unanswered Suppose the risk-free rate is 1.41% and an analyst assumes a market risk premium of 7.94%. Firm A just paid a dividend of $1.37 per share. The analyst estimates the of Firm A to be 1.28 and estimates the dividend growth rate to be 4.02% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.81 per share. The analyst estimates the of Firm B to be 0.80 and believes that dividends will grow at 2.56% forever. Firm B has 196.00 million shares outstanding. What is the value of Firm A? not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #28 The risk-free rate is 2.99% and the market risk premium is 9.32%. A stock with a of 0.90 just paid a dividend of $2.46. The dividend is expected to grow at 24.06% for five years and then grow at 4.72% forever. What is the value of the stock? unanswered not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainable Finance And Impact Investing

Authors: Alan S. Gutterman

1st Edition

1637423764, 978-1637423769

More Books

Students also viewed these Finance questions