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Suppose the risk-free rate is 1.09% and an analyst assumes a market risk premium of 6.59%. Firm A just paid a dividend of $1.30 per
Suppose the risk-free rate is 1.09% and an analyst assumes a market risk premium of 6.59%. Firm A just paid a dividend of $1.30 per share. The analyst estimates the of Firm A to be 1.40 and estimates the dividend growth rate to be 4.50% forever. Firm A has 256.00 million shares outstanding. Firm B just paid a dividend of $1.85 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.18% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B?
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