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Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 6.76%. Firm A just paid a dividend of $1.30 per
Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 6.76%. Firm A just paid a dividend of $1.30 per share. The analyst estimates the of Firm A to be 1.37 and estimates the dividend growth rate to be 4.98% forever. Firm A has 298.00 million shares outstanding. Firm B just paid a dividend of $1.63 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.24% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places
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