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Suppose the risk - free rate is 3 . 7 9 % and an analyst assumes a market risk premium of 5 . 3 2

Suppose the risk-free rate is 3.79% and an analyst assumes a market risk premium of 5.32%. Firm A just paid a dividend of $1.11 per share. The analyst estimates the \beta of Firm A to be 1.25 and estimates the dividend growth rate to be 4.63% forever. Firm A has 283.00 million shares outstanding. Firm B just paid a dividend of $1.78 per share. The analyst estimates the \beta of Firm B to be 0.76 and believes that dividends will grow at 2.53% forever. Firm B has 199.00 million shares outstanding. What is the value of Firm A?

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