29 #5

Suppose the risk-free rate is 1.89% and an analyst assumes a market risk premium of 7.78%. Firm A just paid a dividend of $1.36 per share. The analyst estimates the of Firm A to be 1.41 and estimates the dividend growth rate to be 4.84% forever. Firm A has 259.00 million shares outstanding. Firm B just paid a dividend of $1.72 per share. The analyst estimates the of Firm B to be 0.75 and believes that dividends will grow at 2.01% forever. Firm B has 189.00 million shares outstanding. What is the value of Firm B?

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