Question: The question on the top has correct answer to show you how the answer needs to be for question on the bottom, thank you. Suppose

The question on the top has correct answer to show you how the answer needs to be for question on the bottom, thank you. The question on the top has correct answer to show you how

Suppose the risk-free rate is 1.87% and an analyst assumes a market risk premium of 6.80%. Firm Ajust paid a dividend of $1.06 per share. The analyst estimates the B of Firm A to be 1.21 and estimates the dividend growth rate to be 4.05% forever. Firm A has 277.00 million shares outstanding. Firm Bjust paid a dividend of $1.70 per share. The analyst estimates the B of Firm B to be 0.77 and believes that dividends will grow at 2.95% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm B? Suomet Answer format: Currency. Round to: 2 decimal places. Show Hint rattempted incorrect Correct Answer: $8,169,612,608.28 Points: 0 More Details Attempts Remaining: Infinity Suppose the risk-free rate is 3.65% and an analyst assumes a market risk premium of 7.45%. Frm Ajust paid a dividend of $1.44 per share. The analyst estimates the of Firm A to be 1.30 and estimates the dividend growth rate to be 4.34% forever. Firm A has 261.00 million shares outstanding. Firm Bjust paid a dividend of $1.71 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.92% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Pound to: 2 decimal places unanswered not submitted Attempts Remaining: Infinity

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 Accounting Questions!

Q:

\f