Question: please write out the full answer Suppose the risk-free rate is 1.63% and an analyst assumes a market risk premium of 5.14%. Firm A just

please write out the full answer

Suppose the risk-free rate is 1.63% and an analyst assumes a market risk premium of 5.14%. Firm A just paid a dividend of $1.31 per share. The analyst estimates the B of Firm A to be 1.38 and estimates the dividend growth rate to be 4.25% forever. Firm A has 298.00 million shares outstanding. Firm B just paid a dividend of $1.62 per share. The analyst estimates the of Firm B to be 0.90 and believes that dividends will grow at 2.73% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Caspian Sea Drinks needs to raise $87.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.76 next year, which will grow at 4.69% forever and the...

Suppose the risk-free rate is 1.63% and an analyst assumes a market risk premium of 5.20%. Firm A just paid a dividend of $1.24 per share. The analyst estimates the of Firm A to be 1.32 and estimates...

The risk-free rate is 2.70% and the market is premium is 7.02%. A stock with a of 102 just paid a dividend of 208 The dividend is expected to grow at 23.94% for three years and then grow at 35%...

Please show work, thanks sm #4 Suppose the risk-free rate is 3.76% and an analyst assumes a market risk premium of 5.89%. Firm A just paid a dividend of $1.05 per share. The analyst estimates the of...

Suppose the risk - free rate is 1 . 6 3 % and an analyst assumes a market risk premium of 7 . 4 1 % . Firm A just paid a dividend of $ 1 . 0 0 per share. The analyst estimates the \ beta of Firm A to...

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...

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

please show all steps for all problems PS 29 - graded Due: Wednesday, March 30, 2022, at 11:59.59 PM EDT View List Unanswered Answered The risk-free rate is 1.19% and the market risk premium is...

Really need help with these questions please and thank you! 21 The risk-free rate is 3.93% and the market risk premium is 10.00%. A stock with a of 1.37 just paid a dividend of $2.62 The dividend is...

All of them please. The risk-free rate is 1.45% and the market risk premium is 7.39%. A stock with a of 0.92 just paid a dividend of $1.07. The dividend is expected to grow at 23.73% for three years...

A family of mutual funds maintains a service that allows clients to switch money among accounts through a telephone call. It was estimated that 3.2% of callers either get a busy signal or are kept on...

A bond pays coupons semi-annually at a 6% coupon rate, that matures in 10 years, and currently has yielded at 6%. The yield will have a 25-basis point increase every 6 months before coupon payment,...

The concept of the riche is fot quite the same as stgmentation, Niches arise from the tport market, while segments are imposed on the sport malac. Amariet stgment is more about a wop - down appooch,...

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Takes active responsibility for the development of others by setting realistic and challenging objectives.

Deals promptly with inappropriate behaviour and performance problems in a direct and honest manner. 122 ASSESSING LEADERSHIP BEHAVIOUR

Involves staff in creating a shared vision for the service and a sense of collective purpose within the team. Knowledge and understanding Employees with knowledge and understanding are able to...