Suppose the risk-free rate is 1.24% and an analyst assumes a market risk premium of 6.69%. Firm A just paid a dividend of $1.31 per share. The analyst estimates the of Firm A to be 1.40 and estimates the dividend growth rate to be 4.85% forever. Firm A has 261.00 million shares outstanding. Firm B just paid a dividend of $1.67 per share. The analyst estimates the of Firm B to be 0.80 and believes that dividends will grow at 2.23% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?

Submit

Answer format: Currency: Round to: 2 decimal places.

unanswered

not_submitted

Attempts Remaining: Infinity

#5

Suppose the risk-free rate is 2.04% and an analyst assumes a market risk premium of 6.98%. Firm A just paid a dividend of $1.11 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.12% forever. Firm A has 284.00 million shares outstanding. Firm B just paid a dividend of $1.67 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.97% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B?

Submit