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4 decimal places Suppose the risk-free rate is 1.89% and an analyst assumes a market risk premium of 6.55%. Firm Ajust paid a dividend of
4 decimal places
Suppose the risk-free rate is 1.89% and an analyst assumes a market risk premium of 6.55%. Firm Ajust paid a dividend of $1.46 per share. The analyst estimates the B of Firm A to be 1.25 and estimates the dividend growth rate to be 4.45% forever. Firm A has 272.00 million shares outstanding. Firm B just paid a dividend of $1.87 per share. The analyst estimates the B of Firm B to be 0.74 and believes that dividends will grow at 2.83% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm B? Submit Step by Step Solution
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