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Suppose the risk-free rate is 2.43% and an analyst assumes a market risk premium of 7.02%. Firm A just paid a dividend of $1.16 per
Suppose the risk-free rate is 2.43% and an analyst assumes a market risk premium of 7.02%. Firm A just paid a dividend of $1.16 per share. The analyst estimates the of Firm A to be 1.22 and estimates the dividend growth rate to be 4.61% forever. Firm A has 266.00 million shares outstanding. Firm B just paid a dividend of $1.56 per share. The analyst estimates the of Firm B to be 0.86 and believes that dividends will grow at 2.08% forever. Firm B has 185.00 million shares outstanding. What is the value of Firm A?
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