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#1 Suppose the risk-free rate is 3.32% and an analyst assumes a market risk premium of...

#1 Suppose the risk-free rate is 3.32% and an analyst assumes a market risk premium of 6.21%. Firm A just paid a dividend of $1.36 per share. The analyst estimates the β of Firm A to be 1.42 and estimates the dividend growth rate to be 4.12% forever. Firm A has 260.00 million shares outstanding. Firm B just paid a dividend of $1.57 per share. The analyst estimates the β of Firm B to be 0.86 and believes that dividends will grow at 2.66% forever. Firm B has 194.00 million shares outstanding. What is the value of Firm A?

#2 Suppose the risk-free rate is 3.95% and an analyst assumes a market risk premium of 5.24%. Firm A just paid a dividend of $1.34 per share. The analyst estimates the β of Firm A to be 1.24 and estimates the dividend growth rate to be 4.78% forever. Firm A has 297.00 million shares outstanding. Firm B just paid a dividend of $1.96 per share. The analyst estimates the β of Firm B to be 0.84 and believes that dividends will grow at 2.44% forever. Firm B has 198.00 million shares outstanding. What is the value of Firm B?

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