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Show the work please. # 26 Suppose the risk-free rate is 2.49% and an analyst assumes a market risk premium of 5.52%. Firm A just
Show the work please.
# 26 Suppose the risk-free rate is 2.49% and an analyst assumes a market risk premium of 5.52%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.27 and estimates the dividend growth rate to be 4.23% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.76 per share. The analyst estimates the of Firm B to be 0.87 and believes that dividends will grow at 2.16% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal placesStep by Step Solution
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