#29 Suppose the risk-free rate is 2.12% and an analyst assumes a market risk premium of 5.18%. Firm A just paid a dividend of $1.09 per share. The analyst estimates the B of Firm A to be 1.48 and...


#29<br>Suppose the risk-free rate is 2.12% and an analyst<br>assumes a market risk premium of 5.18%. Firm A just<br>paid a dividend of $1.09 per share. The analyst<br>estimates the B of Firm A to be 1.48 and estimates the<br>dividend growth rate to be 4.49% forever. Firm A has<br>262.00 million shares outstanding. Firm B just paid a<br>dividend of $1.82 per share. The analyst estimates the B<br>of Firm B to be 0.72 and believes that dividends will<br>grow at 2.61% forever. Firm B has 182.00 million shares<br>outstanding. What is the value of Firm A?<br>Submit<br>Answer format: Currency: Round to: 2 decimal places.<br>unanswered<br>not_submitted<br>Attempts Remaining: Infinity<br>

Extracted text: #29 Suppose the risk-free rate is 2.12% and an analyst assumes a market risk premium of 5.18%. Firm A just paid a dividend of $1.09 per share. The analyst estimates the B of Firm A to be 1.48 and estimates the dividend growth rate to be 4.49% forever. Firm A has 262.00 million shares outstanding. Firm B just paid a dividend of $1.82 per share. The analyst estimates the B of Firm B to be 0.72 and believes that dividends will grow at 2.61% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity

Jun 08, 2022
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