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1.

The market price of a stock is $47.59 and it just paid $5.13 dividend. The dividend is expected to grow at 3.08% forever. What is the required rate of return for the stock?

2.

Suppose the risk-free rate is 3.47% and an analyst assumes a market risk premium of 6.24%. Firm A just paid a dividend of $1.16 per share. The analyst estimates the of Firm A to be 1.49 and estimates the dividend growth rate to be 4.55% forever. Firm A has 263.00 million shares outstanding. Firm B just paid a dividend of $1.87 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.24% forever. Firm B has 190.00 million shares outstanding. What is the value of Firm A?

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Answer format: Currency: Round to: 2 decimal places.