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Suppose the risk - free rate is 2 . 5 3 % and an analyst assumes a market risk premium of 5 . 3 0

Suppose the risk-free rate is 2.53% and an analyst assumes a market risk premium of 5.30%. Firm A just paid a dividend of $1.29 per share. The analyst estimates the \beta of Firm A to be 1.24 and estimates the dividend growth rate to be 4.90% forever. Firm A has 254.00 million shares outstanding. Firm B just paid a dividend of $1.64 per share. The analyst estimates the \beta of Firm B to be 0.79 and believes that dividends will grow at 2.45% forever. Firm B has 187.00 million shares outstanding. What is the value of Firm A?

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