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Business, 07.04.2020 15:47 fffcc8759

Suppose the risk-free rate is 1.28% and an analyst assumes a market risk premium of 7.25%. Firm A just paid a dividend of $1.22 per share. The analyst estimates the β of Firm A to be 1.28 and estimates the dividend growth rate to be 4.72% forever. Firm A has 262.00 million shares outstanding. Firm B just paid a dividend of $1.83 per share. The analyst estimates the β of Firm B to be 0.87 and believes that dividends will grow at 2.30% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm A?

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Suppose the risk-free rate is 1.28% and an analyst assumes a market risk premium of 7.25%. Firm A ju...
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