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Suppose the risk-free rate is 2.57% and an analyst assumes a market risk premium of 5.05%. Firm A just paid a dividend of $1.32 per

image text in transcribed Suppose the risk-free rate is 2.57% and an analyst assumes a market risk premium of 5.05%. Firm A just paid a dividend of $1.32 per share. The analyst estimates the of Firm A to be 1.23 and estimates the dividend growth rate to be 4.71% forever. Firm A has 260.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the of Firm B to be 0.75 and believes that dividends will grow at 2.30% forever. Firm B has 188.00 million shares outstanding. What is the value of Firm A? Answer format: Currency: Round to: 2 decimal places

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