Question
uppose the risk-free rate is 2.07% and an analyst assumes a market risk premium of 7.01%. Firm A just paid a dividend of $1.10 per
uppose the risk-free rate is 2.07% and an analyst assumes a market risk premium of 7.01%. Firm A just paid a dividend of $1.10 per share. The analyst estimates the of Firm A to be 1.33 and estimates the dividend growth rate to be 4.99% forever. Firm A has 269.00 million shares outstanding. Firm B just paid a dividend of $1.51 per share. The analyst estimates the of Firm B to be 0.84 and believes that dividends will grow at 2.31% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B? Currency: Round to: 2 decimal places.
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