a. The risk-free rate is 2.47% and the market risk premium is 6.22%. A stock with a of 1.74 just paid a dividend of $2.55. The dividend is expected to grow at 20.14% for five years and then grow at 4.91% forever. What is the value of the stock?

b. Caspian Sea Drinks needs to raise $42.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.59 next year, which will grow at 3.25% forever and the cost of equity to be 13.18%, then how many shares of stock must CSD sell?

c. Suppose the risk-free rate is 1.26% and an analyst assumes a market risk premium of 7.39%. Firm A just paid a dividend of $1.17 per share. The analyst estimates the of Firm A to be 1.48 and estimates the dividend growth rate to be 4.50% forever. Firm A has 257.00 million shares outstanding. Firm B just paid a dividend of $1.79 per share. The analyst estimates the of Firm B to be 0.84 and believes that dividends will grow at 2.13% forever. Firm B has 195.00 million shares outstanding. What is the value of Firm A?