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Suppose the risk-free rate is 3.04% and an analyst assumes a market risk premium of 7 35%. Firm A just paid a dividend of $1.08
Suppose the risk-free rate is 3.04% and an analyst assumes a market risk premium of 7 35%. Firm A just paid a dividend of $1.08 per share. The analyst estimates the of Firm A to be 1.41 and estimates the dividend growth rate to be 4.05% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.92 per share. The analyst estimates the of Firm B to be 0.86 and believes that dividends will grow at 2.57% forever. Firm B has 183.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places
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