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Suppose the risk - free rate is 2 . 2 1 % and an analyst assumes a market risk premium of 5 . 1 6

Suppose the risk-free rate is 2.21% and an analyst assumes a market risk premium of 5.16%. Firm A just paid a dividend of $1.44 per share. The analyst estimates the \beta of Firm A to be 1.31 and estimates the dividend growth rate to be 4.24% forever. Firm A has 299.00 million shares outstanding. Firm B just paid a dividend of $1.51 per share. The analyst estimates the \beta of Firm B to be 0.84 and believes that dividends will grow at 2.89% forever. Firm B has 193.00 million shares outstanding. What is the value of Firm A?

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