Question
Suppose the risk-free rate is 1.81% and an analyst assumes a market risk premium of 7.29%. Firm A just paid a dividend of $1.27 per
Suppose the risk-free rate is 1.81% and an analyst assumes a market risk premium of 7.29%. Firm A just paid a dividend of $1.27 per share. The analyst estimates the of Firm A to be 1.41 and estimates the dividend growth rate to be 4.96% forever. Firm A has 294.00 million shares outstanding. Firm B just paid a dividend of $1.53 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.28% forever. Firm B has 192.00 million shares outstanding. What is the value of Firm A?
ROUND ANSWER TO TWO DECIMAL PLACES PLEASE, THANK YOU
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