The risk-free rate is 3.53% and the market risk premium is 9.91%. A stock with...
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The risk-free rate is 3.53% and the market risk premium is 9.91%. A stock with a B of 1.13 just paid a dividend of $2.96. The dividend is expected to grow at 24.67% for five years and then grow at 4.38% forever. What is the value of the stock? Suppose the risk-free rate is 2.38% and an analyst assumes a market risk premium of 7.93%. Firm A just paid a dividend of $1.20 per share. The analyst estimates the B of Firm A to be 1.50 and estimates the dividend growth rate to be 4.22% forever. Firm A has 260.00 million shares outstanding, Firm B just paid a dividend of $1.58 per share. The analyst estimates the 3 of Firm B to be 0.71 and believes that dividends will grow at 2.89% forever. Firm B has 195.00 million shares outstanding. What is the value of Firm B
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