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# 4 Suppose the risk - free rate is 3 . 2 6 % and an analyst assumes a market risk premium of 7 .
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Suppose the riskfree rate is and an analyst assumes a market risk premium of Firm A just paid a dividend of $ per share. The analyst estimates the of Firm to be and estimates the dividend growth rate to be forever. Firm A has million shares outstanding. Firm B just paid a dividend of $ per share. The analyst estimates the of Firm B to be and believes that dividends will grow at forever. Firm B has million shares outstanding. What is the value of Firm A
Answer format: Currency: Round to: decimal places.
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Suppose the riskfree rate is and an analyst assumes a market risk premium of Firm A just paid a dividend of $ per share. The analyst estimates the of Firm to be and estimates the dividend growth rate to be forever. Firm A has million shares outstanding. Firm B just paid a dividend of $ per share. The analyst estimates the of Firm B to be and believes that dividends will grow at forever. Firm has million shares outstanding. What is the value of Firm B
Answer format: Currency: Round to: decimal places.
Please use a financial calculator for each part.
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