Question: PLEASE ONLY ANSWER IF YOU KNOW HOW TO SOLVE I WILL THUMBS UP THANKS!! #5. Suppose the risk-free rate is 3.43% and an analyst assumes
PLEASE ONLY ANSWER IF YOU KNOW HOW TO SOLVE I WILL THUMBS UP THANKS!!
#5.
Suppose the risk-free rate is 3.43% and an analyst assumes a market risk premium of 5.66%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the B of Firm A to be 1.40 and estimates the dividend growth rate to be 4.26% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the 3 of Firm B to be 0.83 and believes that dividends will grow at 2.21% forever. Firm B has 197.00 million shares outstanding. What is the value of Firm A?
Answer format: Currency: Round to: 2 decimal places.
Suppose the risk-free rate is 2.23% and an analyst assumes a market risk premium of 7.80%. Firm A just paid a dividend of $1.50 per share. The analyst estimates the 3 of Firm A to be 1.44 and estimates the dividend growth rate to be 4.95% forever. Firm A has 292.00 million shares outstanding. Firm B just paid a dividend of $1.98 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.70% forever. Firm B has 191.00 million shares outstanding. What is the value of Firm B?
Answer format: Currency: Round to: 2 decimal places.
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