Business
Business, 30.10.2020 17:20, BeeShyanne

g Suppose the risk-free rate is 2.79% and an analyst assumes a market risk premium of 5.07%. Firm A just paid a dividend of $1.38 per share. The analyst estimates the β of Firm A to be 1.24 and estimates the dividend growth rate to be 4.04% forever. Firm A has 259.00 million shares outstanding. Firm B just paid a dividend of $1.51 per share. The analyst estimates the β of Firm B to be 0.84 and believes that dividends will grow at 2.12% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?

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g Suppose the risk-free rate is 2.79% and an analyst assumes a market risk premium of 5.07%. Firm A...

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