Question
Suppose the risk-free rate is 1.09% and an analyst assumes a market risk premium of 6.22%. Firm A just paid a dividend of $1.23 per
Suppose the risk-free rate is 1.09% and an analyst assumes a market risk premium of 6.22%. Firm A just paid a dividend of $1.23 per share. The analyst estimates the of Firm A to be 1.47 and estimates the dividend growth rate to be 4.08% forever. Firm A has 281.00 million shares outstanding. Firm B just paid a dividend of $1.59 per share. The analyst estimates the of Firm B to be 0.82 and believes that dividends will grow at 2.50% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm A? I need help with this question please!
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