Suppose the risk-free rate is 2.49% and an analyst assumes a market risk premium of...
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Suppose the risk-free rate is 2.49% and an analyst assumes a market risk premium of 7.77%. Firm A just paid a dividend of $1.19 per share. The analyst estimates the of Firm A to be 1.48 and estimates the dividend growth rate to be 4.79% forever. Firm A has 254.00 million shares outstanding. Firm B just paid a dividend of $1.66 per share. The analyst estimates the of Firm B to be 0.75 and believes that dividends will grow at 2.74% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A?
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