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Suppose the risk-free rate is 1.13% and an analyst assumes a market risk premium of 7.17%. Firm A just paid a dividend of $1.09 per
Suppose the risk-free rate is 1.13% and an analyst assumes a market risk premium of 7.17%. Firm A just paid a dividend of $1.09 per share. The analyst estimates the of Firm A to be 1.35 and estimates the dividend growth rate to be 4.26% forever. Firm A has 286.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.93% forever. Firm B has 187.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places
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