Question
Suppose the risk-free rate is 2.44% and an analyst assumes a market risk premium of 7.22%. Firm A just paid a dividend of $1.47 per
Suppose the risk-free rate is 2.44% and an analyst assumes a market risk premium of 7.22%. Firm A just paid a dividend of $1.47 per share. The analyst estimates the of Firm A to be 1.41 and estimates the dividend growth rate to be 4.90% forever. Firm A has 253.00 million shares outstanding. Firm B just paid a dividend of $1.98 per share. The analyst estimates the of Firm B to be 0.86 and believes that dividends will grow at 2.01% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?
Suppose the risk-free rate is 2.45% and an analyst assumes a market risk premium of 7.51%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the of Firm A to be 1.37 and estimates the dividend growth rate to be 4.40% forever. Firm A has 253.00 million shares outstanding. Firm B just paid a dividend of $1.74 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.99% forever. Firm B has 199.00 million shares outstanding. What is the value of Firm B?
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