Question
I need help immediately please before 10:30 pm tonight. Suppose the risk-free rate is 2.75% and an analyst assumes a market risk premium of 7.44%.
I need help immediately please before 10:30 pm tonight.
Suppose the risk-free rate is 2.75% and an analyst assumes a market risk premium of 7.44%. Firm A just paid a dividend of $1.47 per share. The analyst estimates the of Firm A to be 1.25 and estimates the dividend growth rate to be 4.41% forever. Firm A has 265.00 million shares outstanding. Firm B just paid a dividend of $2.00 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.81% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm A?
Submit Answer format: Currency: Round to: 2 decimal places.
Please show all steps and in a simple format. I am just learning. Please ensure answer is correct. Thanks.
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