Question
The risk-free rate is 3.75% and the market risk premium is 9.91%. A stock with a of 1.08 just paid a dividend of $2.72. The
The risk-free rate is 3.75% and the market risk premium is 9.91%. A stock with a of 1.08 just paid a dividend of $2.72. The dividend is expected to grow at 23.39% for three years and then grow at 4.95% forever. What is the value of the stock?
round to two decimal places
Suppose the risk-free rate is 2.10% and an analyst assumes a market risk premium of 7.06%. Firm A just paid a dividend of $1.19 per share. The analyst estimates the of Firm A to be 1.22 and estimates the dividend growth rate to be 4.30% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.99 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.30% forever. Firm B has 197.00 million shares outstanding. What is the value of Firm A?
write number completely out and round two decimal places
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