4.29-

Suppose the risk-free rate is 2.14% and an analyst assumes a market risk premium of 5.66%. Firm A just paid a dividend of $1.34 per share. The analyst estimates the of Firm A to be 1.32 and estimates the dividend growth rate to be 4.98% forever. Firm A has 284.00 million shares outstanding. Firm B just paid a dividend of $1.77 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.98% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?

5.29-

Suppose the risk-free rate is 3.63% and an analyst assumes a market risk premium of 5.25%. Firm A just paid a dividend of $1.29 per share. The analyst estimates the of Firm A to be 1.37 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 $1.68 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.95% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B?