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Suppose the risk-free rate is 2.56% and an analyst assumes a market risk premium of 5.38%. Firm A just paid a dividend of $1.32 per

  1. Suppose the risk-free rate is 2.56% and an analyst assumes a market risk premium of 5.38%. Firm A just paid a dividend of $1.32 per share. The analyst estimates the of Firm A to be 1.35 and estimates the dividend growth rate to be 5.00% forever. Firm A has 278.00 million shares outstanding. Firm B just paid a dividend of $1.88 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.80% forever. Firm B has 190.00 million shares outstanding. What is the value of Firm A?
  2. Suppose the risk-free rate is 1.89% and an analyst assumes a market risk premium of 6.75%. Firm A just paid a dividend of $1.23 per share. The analyst estimates the of Firm A to be 1.32 and estimates the dividend growth rate to be 4.21% forever. Firm A has 255.00 million shares outstanding. Firm B just paid a dividend of $1.88 per share. The analyst estimates the of Firm B to be 0.90 and believes that dividends will grow at 2.16% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B?
  3. Suppose the risk-free rate is 1.50% and an analyst assumes a market risk premium of 5.23%. Firm A just paid a dividend of $1.33 per share. The analyst estimates the of Firm A to be 1.24 and estimates the dividend growth rate to be 4.49% forever. Firm A has 279.00 million shares outstanding. Firm B just paid a dividend of $1.97 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.10% forever. Firm B has 197.00 million shares outstanding. What is the value of Firm A?
  4. Suppose the risk-free rate is 2.23% and an analyst assumes a market risk premium of 6.55%. Firm A just paid a dividend of $1.27 per share. The analyst estimates the of Firm A to be 1.47 and estimates the dividend growth rate to be 4.31% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.57 per share. The analyst estimates the of Firm B to be 0.76 and believes that dividends will grow at 2.17% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm B?

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