Suppose the risk-free rate is 2.65% and an analyst assumes a market risk premium of...
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Suppose the risk-free rate is 2.65% and an analyst assumes a market risk premium of 5.70%. Firm A just paid a dividend of $1.20 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.27% forever. Firm A has 254.00 million shares outstanding. Firm B just paid a dividend of $1.68 per share. The analyst estimates the of Firm B to be 0.85 and believes that dividends will grow at 2.63% forever. Firm B has 187.00 million shares outstanding. What is the value of Firm A
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