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#29 Suppose the risk-free rate is 1.11% and an analyst assumes a market risk premium of 7.18%. Firm A just paid a dividend of $1.39
#29 Suppose the risk-free rate is 1.11% and an analyst assumes a market risk premium of 7.18%. Firm A just paid a dividend of $1.39 per share. The analyst estimates the B of Firm A to be 1.40 and estimates the dividend growth rate to be 4.92% forever. Firm A has 262.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the of Firm B to be 0.77 and believes that dividends will grow at 2.35% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round 2 decimal places
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