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Suppose the risk-free rate is 3.75% and an analyst assumes a market risk premium of 6.97%. Firm A just paid a dividend of $1.03 per
Suppose the risk-free rate is 3.75% and an analyst assumes a market risk premium of 6.97%. Firm A just paid a dividend of $1.03 per share. The analyst estimates the of Firm A to be 1.44 and estimates the dividend growth rate to be 4.41% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.81 per share. The analyst estimates the of Firm B to be 0.79 and believes that dividends will grow at 2.65% forever. Firm B has 185.00 million shares outstanding. What is the value of Firm B?
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