49. Victoria is interested in adding some KLM, Inc. stock to her retirement account. She...
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49. Victoria is interested in adding some KLM, Inc. stock to her retirement account. She observes that the stock just paid a dividend of $4.00 (i.e., D04.00 ). Based on her estimates, dividends will grow at 20% for the next two years (i.e., in years 1 and 2) and at 5% per year forever after that (i.e., in years 3,4,5,, ). Assuming a discount rate of 11.6%, Victoria estimates the value of each share of KLM. Inc. stock to equal \$ 50. Suppose the risk-free rate is 2.20% and analysts estimate that the market risk premium is 5.50%. Firm A just paid a dividend of $1.80 per share. The analyst estimates the of Firm A to be 1.22 and estimates the dividend growth rate to be 4.36% forever. If Firm A has 200,000 shares of common stock outstanding. what is the total market value of Firm A's equity (i.c., price per share times number of shares outstanding)? (Round your answer p to the nearest whole number (l.e, no decimal places): for example, enter 112,304.874 or 112,304.128 as 112305 )
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