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Suppose the risk-free rate is 2.72% and an analyst assumes a market risk premium of 5.23%. Firm A just paid a dividend of $1.22 per
Suppose the risk-free rate is 2.72% and an analyst assumes a market risk premium of 5.23%. Firm A just paid a dividend of $1.22 per share. The analyst estimates the of Firm A to be 1.49 and estimates the dividend growth rate to be 4.28% forever. Firm A has 274.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the B of Firm B to be 0.81 and believes that dividends will grow at 2.98% 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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