Please explain the steps and equations used. #26 unanswered Suppose the risk-free rate...
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Please explain the steps and equations used.
#26 unanswered Suppose the risk-free rate is 3.47% and an analyst assumes a market risk premium of 6.38%. Firm A just paid a dividend of $1.33 per share. The analyst estimates the of Firm A to be 1.30 and estimates the dividend growth rate to be 4.64% forever. Firm A has 279.00 million shares outstanding. Firm B just paid a dividend of $1.62 per share. The analyst estimates the of Firm B to be 0.72 and believes that dividends will grow at 2.35% forever. Firm B has 183.00 million shares outstanding. What is the value of Firm B? not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #27 unanswered Suppose the risk-free rate is 1.54% and an analyst assumes a market risk premium of 5.68%. Firm A just paid a dividend of $1.47 per share. The analyst estimates the of Firm A to be 1.43 and estimates the dividend growth rate to be 4.72% forever. Firm A has 295.00 million shares outstanding. Firm B just paid a dividend of $1.64 per share. The analyst estimates the of Firm B to be 0.74 and believes that dividends will grow at 2.38% forever. Firm B has 193.00 million shares outstanding. What is the value of Firm A? not submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places
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