Question: PLEASE ANSWER QUESTION FULLY AND LEAVE STEPS TO SOLVE PROBLEM. THANK YOU :) Suppose the risk-free rate is 3.12% and an analyst assumes a market
PLEASE ANSWER QUESTION FULLY AND LEAVE STEPS TO SOLVE PROBLEM. THANK YOU :)
Suppose the risk-free rate is 3.12% and an analyst assumes a market risk premium of 7.45%. Firm A just paid a dividend of $1.11 per share. The analyst estimates the B of Firm A to be 1.25 and estimates the dividend growth rate to be 4.92% forever. Firm A has 256.00 million shares outstanding. Firm Bjust paid a dividend of $1.50 per share. The analyst estimates the B of Firm B to be 0.87 and believes that dividends will grow at 2.94% forever. Firm B has 190.00 million shares outstanding. What is the value of Firm A? Submit
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