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Suppose the risk - free rate is 1 . 6 6 % and an analyst assumes a market risk premium of 7 . 6 4

Suppose the risk-free rate is 1.66% and an analyst assumes a market risk premium of 7.64%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the \beta of Firm A to be 1.29 and estimates the dividend growth rate to be 4.67% forever. Firm A has 265.00 million shares outstanding. Firm B just paid a dividend of $1.60 per share. The analyst estimates the \beta of Firm B to be 0.89 and believes that dividends will grow at 2.97% forever. Firm B has 189.00 million shares outstanding. What is the value of Firm B?

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