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Please show the whole number. #4 unanswered not submitted Suppose the risk-free rate is 2.51% and an analyst assumes a market risk premium of 7.95%.
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#4 unanswered not submitted Suppose the risk-free rate is 2.51% and an analyst assumes a market risk premium of 7.95%. Firm A just paid a dividend of $1.34 per share. The analyst estimates the of Firm A to be 1.22 and estimates the dividend growth rate to be 4.21% forever. Firm A has 299.00 million shares outstanding. Firm B just paid a dividend of $1.72 per share. The analyst estimates the of Firm B to be 0.80 and believes that dividends will grow at 2.35% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A? Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #4 reattempted incorrect Suppose the risk-free rate is 1.69% and an analyst assumes a market risk premium of 6.05%. Firm A just paid a dividend of $1.30 per share. The analyst estimates the of Firm A to be 1.48 and estimates the dividend growth rate to be 4.63% forever. Firm A has 288.00 million shares outstanding. Firm B just paid a dividend of $1.71 per share. The analyst estimates the of Firm B to be 0.84 and believes that dividends will grow at 2.28% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm A? Correct Answer: $6,513,713,335.55 Points: 0 More Details Attempts Remaining: Infinity 6513.71 Submit Answer format: Currency: Round to: 2 decimal places. Show HintStep by Step Solution
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