A.)

Suppose the risk-free rate is 3.58% and an analyst assumes a market risk premium of 6.19%. Firm A just paid a dividend of $1.11 per share. The analyst estimates the of Firm A to be 1.33 and estimates the dividend growth rate to be 4.19% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.91 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.06% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm A?

B.)

Suppose the risk-free rate is 3.88% and an analyst assumes a market risk premium of 7.19%. Firm A just paid a dividend of $1.47 per share. The analyst estimates the of Firm A to be 1.22 and estimates the dividend growth rate to be 4.65% forever. Firm A has 256.00 million shares outstanding. Firm B just paid a dividend of $1.68 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.60% forever. Firm B has 196.00 million shares outstanding. What is the value of Firm B?