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Suppose the risk-free rate is 3.21% and an analyst assumes a market risk premium of 6.26%. Firm A just paid a dividend of $1.36 per
Suppose the risk-free rate is 3.21% and an analyst assumes a market risk premium of 6.26%. Firm A just paid a dividend of $1.36 per share. The analyst estimates the of Firm A to be 1.36 and estimates the dividend growth rate to be 4.30% forever. Firm A has 268.00 million shares outstanding. Firm B just paid a dividend of $1.94 per share. The analyst estimates the of Firm B to be 0.73 and believes that dividends will grow at 2.04% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A? Round 2 decimal places.
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