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mm2 27 Suppose the risk-free rate is 1.15% and an analyst assumes a market risk premium of 7.49%. Firm A just paid a dividend of

mm2 27

Suppose the risk-free rate is 1.15% and an analyst assumes a market risk premium of 7.49%. Firm A just paid a dividend of $1.28 per share. The analyst estimates the of Firm A to be 1.33 and estimates the dividend growth rate to be 4.48% forever. Firm A has 287.00 million shares outstanding. Firm B just paid a dividend of $1.63 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.31% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm A?

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