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Suppose the risk-free rate is 2.60% and an analyst assumes a market risk premium of 5.93%. Firm A just paid a dividend of $1.40 per
Suppose the risk-free rate is 2.60% and an analyst assumes a market risk premium of 5.93%. Firm A just paid a dividend of $1.40 per share. The analyst estimates the 3 of Firm A to be 1.48 and estimates the dividend growth rate to be 4.94% forever. Firm A has 268.00 million shares outstanding. Firm B just paid a dividend of $1.93 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.37% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places.
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