#26 Suppose the risk-free rate is 2.20% and an analyst assumes a market risk premium of 6.19%....

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Suppose the risk-free rate is 2.20% and an analyst assumes a market risk premium of 6.19%. Firm A just paid a dividend of $1.43 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.79% forever. Firm A has 263.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the of Firm B to be 0.86 and believes that dividends will grow at 2.35% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B?

Answer format:Currency: Round to: 2 decimal places.

Posted Date: May 18, 2024 12:16 PM

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#26 Suppose the risk-free rate is 2.20% and an analyst assumes a market risk premium of 6.19%....

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