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Suppose the risk - free rate is 3 . 7 1 % and an analyst assumes a market risk premium of 6 . 3 2

Suppose the risk-free rate is 3.71% and an analyst assumes a market risk premium of 6.32%. Firm A just paid a dividend of $1.13 per share. The analyst estimates the \beta of Firm A to be 1.44 and estimates the dividend growth rate to be 4.01% forever. Firm A has 274.00 million shares outstanding. Firm B just paid a dividend of $1.58 per share. The analyst estimates the \beta of Firm B to be 0.80 and believes that dividends will grow at 2.93% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm B?

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