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#4 c Suppose the risk-free rate is 1.10% and an analyst assumes a market risk premium of 6.06%. Firm A just paid a dividend of
#4 c Suppose the risk-free rate is 1.10% and an analyst assumes a market risk premium of 6.06%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.44 and estimates the dividend growth rate to be 4.32% forever. Firm A has 274.00 million shares outstanding. Firm B just paid a dividend of $1.85 per share. The analyst estimates the of Firm B to be 0.70 and believes that dividends will grow at 2.68% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm A? unanswered not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #5 + Suppose the risk-free rate is 3.24% and an analyst assumes a market risk premium of 7.93%. Firm A just paid a dividend of $1.18 per share. The analyst estimates the of Firm A to be 1.21 and estimates the dividend growth rate to be 4.55% forever. Firm A has 297.00 million shares outstanding. Firm B just paid a dividend of $1.60 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.57% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm B? unanswered not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places
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