Question
The risk-free rate is 2.93% and the market risk premium is 9.54%. A stock with a of 0.97 just paid a dividend of $2.51. The
The risk-free rate is 2.93% and the market risk premium is 9.54%. A stock with a of 0.97 just paid a dividend of $2.51. The dividend is expected to grow at 20.46% for five years and then grow at 3.27% forever. What is the value of the stock?
Suppose the risk-free rate is 3.70% and an analyst assumes a market risk premium of 6.53%. Firm A just paid a dividend of $1.48 per share. The analyst estimates the of Firm A to be 1.47 and estimates the dividend growth rate to be 4.81% forever. Firm A has 279.00 million shares outstanding. Firm B just paid a dividend of $1.62 per share. The analyst estimates the of Firm B to be 0.90 and believes that dividends will grow at 2.34% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm A?
Suppose the risk-free rate is 1.35% and an analyst assumes a market risk premium of 7.32%. Firm A just paid a dividend of $1.36 per share. The analyst estimates the of Firm A to be 1.47 and estimates the dividend growth rate to be 4.62% forever. Firm A has 270.00 million shares outstanding. Firm B just paid a dividend of $1.78 per share. The analyst estimates the of Firm B to be 0.77 and believes that dividends will grow at 2.15% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B?
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