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#4 Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 7.08%. Firm A just paid a dividend of $1.42
#4 Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 7.08%. Firm A just paid a dividend of $1.42 per share. The analyst estimates the of Firm A to be 1.27 and estimates the dividend growth rate to be 4.92% forever. Firm A has 255.00 million shares outstanding. Firm B just paid a dividend of $1.72 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.55% forever. Firm B has 185.00 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 2.45% and an analyst assumes a market risk premium of 7.51%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the of Firm A to be 1.37 and estimates the dividend growth rate to be 4.40% forever. Firm A has 253.00 million shares outstanding. Firm B just paid a dividend of $1.74 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.99% forever. Firm B has 199.00 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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