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Suppose the risk-free rate is 1.65% and an analyst assumes a market risk premium of 6.54%. Firm A just paid a dividend of $1.04 per
Suppose the risk-free rate is 1.65% and an analyst assumes a market risk premium of 6.54%. Firm A just paid a dividend of $1.04 per share. The analyst estimates the of Firm A to be 1.40 and estimates the dividend growth rate to be 4.98% forever. Firm A has 291.00 million shares outstanding. Firm B just paid a dividend of $1.65 per share. The analyst estimates the of Firm B to be 0.75 and believes that dividends will grow at 2.99% forever. Firm B has 195.00 million shares outstanding. What is the value of Firm A?
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