#5

Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 5.90%. Firm A just paid a dividend of $1.43 per share. The analyst estimates the of Firm A to be 1.42 and estimates the dividend growth rate to be 4.55% forever. Firm A has 295.00 million shares outstanding. Firm B just paid a dividend of $1.61 per share. The analyst estimates the of Firm B to be 0.74 and believes that dividends will grow at 2.86% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm A?

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Answer format: Currency: Round to: 2 decimal places.

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#6

Suppose the risk-free rate is 2.44% and an analyst assumes a market risk premium of 6.11%. Firm A just paid a dividend of $1.32 per share. The analyst estimates the of Firm A to be 1.29 and estimates the dividend growth rate to be 4.48% forever. Firm A has 297.00 million shares outstanding. Firm B just paid a dividend of $1.91 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.70% forever. Firm B has 190.00 million shares outstanding. What is the value of Firm B?

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Answer format: Currency: Round to: 2 decimal places.

final answer should be written in millioms