Question
Caspian Sea Drinks needs to raise $80.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.58
Caspian Sea Drinks needs to raise $80.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.58 next year, which will grow at 4.18% forever and the cost of equity to be 12.99%, then how many shares of stock must CSD sell?
Suppose the risk-free rate is 3.28% and an analyst assumes a market risk premium of 6.89%. Firm A just paid a dividend of $1.48 per share. The analyst estimates the of Firm A to be 1.31 and estimates the dividend growth rate to be 4.53% forever. Firm A has 266.00 million shares outstanding. Firm B just paid a dividend of $1.80 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.03% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm A?
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