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Suppose the risk-free rate is 3.94% and an analyst assumes a market risk premium of...

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Finance

Suppose the risk-free rate is 3.94% and an analyst assumes a market risk premium of 5.75%. Firm A just paid a dividend of $1.10 per share. The analyst estimates the of Firm A to be 1.35 and estimates the dividend growth rate to be 4.35% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.86 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.07% forever. Firm B has 193.00 million shares outstanding. What is the value of Firm B?

Round to 2 decimal places.

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