29 #4

Suppose the risk-free rate is 3.44% and an analyst assumes a market risk premium of 7.19%. Firm A just paid a dividend of $1.09 per share. The analyst estimates the of Firm A to be 1.36 and estimates the dividend growth rate to be 4.96% forever. Firm A has 296.00 million shares outstanding. Firm B just paid a dividend of $1.86 per share. The analyst estimates the of Firm B to be 0.84 and believes that dividends will grow at 2.84% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm A?

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