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#4 Suppose the risk-free rate is 1.59% and an analyst assumes a market risk premium of 5.49%. Firm A just paid a dividend of $1.05
#4 Suppose the risk-free rate is 1.59% and an analyst assumes a market risk premium of 5.49%. Firm A just paid a dividend of $1.05 per share. The analyst estimates the B of Firm A to be 1.49 and estimates the dividend growth rate to be 4.02% forever. Firm A has 296.00 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 2.24% forever. Firm B has 187.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. #5 Suppose the risk-free rate is 3.52% and an analyst assumes a market risk premium of 5.86%. Firm A just paid a dividend of $1.18 per share. The analyst estimates the of Firm A to be 1.32 and estimates the dividend growth rate to be 4.29% forever. Firm A has 267.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the B of Firm B to be 0.85 and believes that dividends will grow at 2.94% forever. Firm B has 195.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places
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