Question: PLEASE ANSWER ONLY IF YOU KNOW HOW TO SOLVE THE ANSWER SHOULD COME OUT TO BE A LARGE NUMBER WILL THUMBS UP THANKS ! #5

PLEASE ANSWER ONLY IF YOU KNOW HOW TO SOLVE THE ANSWER SHOULD COME OUT TO BE A LARGE NUMBER WILL THUMBS UP THANKS !

#5

Suppose the risk-free rate is 1.02% and an analyst assumes a market risk premium of 6.63%. Firm A just paid a dividend of $1.22 per share. The analyst estimates the 3 of Firm A to be 1.40 and estimates the dividend growth rate to be 4.75% forever. Firm A has 250.00 million shares outstanding. Firm B just paid a dividend of $1.85 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.87% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm A?

Suppose the risk-free rate is 3.46% and an analyst assumes a market risk premium of 7.65%. Firm A just paid a dividend of $1.20 per share. The analyst estimates the 3 of Firm A to be 1.39 and estimates the dividend growth rate to be 4.78% forever. Firm A has 264.00 million shares outstanding. Firm B just paid a dividend of $1.55 per share. The analyst estimates the 3 of Firm B to be 0.76 and believes that dividends will grow at 2.26% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm B?

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