Question
Suppose the risk-free rate is 2.46% and an analyst assumes a market risk premium of 5.96%. Firm A just paid a dividend of $1.45 per
Suppose the risk-free rate is 2.46% and an analyst assumes a market risk premium of 5.96%. Firm A just paid a dividend of $1.45 per share. The analyst estimates the of Firm A to be 1.26 and estimates the dividend growth rate to be 4.60% forever. Firm A has 274.00 million shares outstanding. Firm B just paid a dividend of $1.67 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.57% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm A?
Answer format: Currency: Round to: 2 decimal places.
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