Suppose the risk-free rate is 2.80% and an analyst assumes a market risk premium of 5.25%. Firm A just paid a dividend of $1.02 per share. The analyst estimates the β of Firm A to be 1.31 and estimates the dividend growth rate to be 5.00% forever. Firm A has 279.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the β of Firm B to be 0.75 and believes that dividends will grow at 2.09% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A?
Answer format:Currency: Round to: 2 decimal places.
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