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#5 Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 6.50%. Firm A just paid a dividend of $1.45

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#5 Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 6.50%. Firm A just paid a dividend of $1.45 per share. The analyst estimates the of Firm A to be 1.26 and estimates the dividend growth rate to be 4.20% forever. Firm A has 291.00 million shares outstanding. Firm B just paid a dividend of $1.81 per share. The analyst estimates the of Firm B to be 0.77 and believes that dividends will grow at 2.14% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places

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