Question: Please post correct answer Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 7.13%. Firm A just paid a
Please post correct answer
Suppose the risk-free rate is 1.22% and an analyst assumes a market risk premium of 7.13%. Firm A just paid a dividend of $1.40 per share. The analyst estimates the of Firm A to be 1.45 and estimates the dividend growth rate to be 4.73% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.74 per share. The analyst estimates the of Firm B to be 0.76 and believes that dividends will grow at 2.53% forever. Firm B has 185.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places
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