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#4 Suppose the risk-free rate is 1.32% and an analyst assumes a market risk premium of 7.62%. Firm A just paid a dividend of $1.12

#4 Suppose the risk-free rate is 1.32% and an analyst assumes a market risk premium of 7.62%. Firm A just paid a dividend of $1.12 per share. The analyst estimates the of Firm A to be 1.25 and estimates the dividend growth rate to be 4.20% forever. Firm A has 288.00 million shares outstanding. Firm B just paid a dividend of $1.78 per share. The analyst estimates the of Firm B to be 0.77 and believes that dividends will grow at 2.13% forever. Firm B has 196.00 million shares outstanding. What is the value of Firm A?

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