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PLEASE EXPLAIN HOW TO SOLVE #26 + unanswered Suppose the risk-free rate is 2.73% and an analyst assumes a market risk premium of 6.00%. Firm
PLEASE EXPLAIN HOW TO SOLVE
#26 + unanswered Suppose the risk-free rate is 2.73% and an analyst assumes a market risk premium of 6.00%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.26 and estimates the dividend growth rate to be 4.53% forever. Firm A has 256.00 million shares outstanding. Firm B just paid a dividend of $1.78 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.06% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm B? not_submitted Attempts Remaining: Infinity SubmitStep by Step Solution
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