Please help #5 Suppose the risk-free rate is 1.97% and an...
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#5 Suppose the risk-free rate is 1.97% and an analyst assumes a market risk premium of 6.78%. Firm A just paid a dividend of $1.18 per share. The analyst estimates the of Firm A to be 1.32 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 $1.74 per share. The analyst estimates the B of Firm B to be 0.83 and believes that dividends will grow at 2.38% 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. C unanswered not_submitted Attempts Remaining: Infinity
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