Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please write thw million out including the decimala a urians Suppose the risk-free rate is 3. 37% and an analyst assumes a market risk premium
please write thw million out including the decimala
a urians Suppose the risk-free rate is 3. 37% and an analyst assumes a market risk premium of 6.30%. Firm A just paid a dividend of $1.13 per share. The analyst estimates the B of Firm A to be 1.25 and estimates the dividend growth rate to be 4.54% forever. Firm A has 273.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the B of Firm B to be 0.75 and believes that dividends will grow at 2.59%[forever. Firm Bhas 188.00 million shares outstanding. What is the value of Firm A? not subm Attempts Remaining: In Submit Answer format: Currency: Round to: 2 decimal places Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started