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?
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 20:50, Unkn0wn3815
Which of the following statements is not correct? 1) trade allows for specialization. 2) trade has the potential to benefit all nations. 3) trade allows nations to consume outside of their production possibilities curves. 4) absolute advantage is the driving force of specialization.
Answers: 3
Business, 21.06.2019 23:00, rosie20052019
Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.
Answers: 2
Business, 22.06.2019 10:00, chancegodwin5
In a small group, members have taken on the task roles of information giver, critic/analyzer, and recorder, and the maintenance roles of gatekeeper and follower. they need to fulfill one more role. which of the following would be most effective for their group dynamics? a dominator b coordinator c opinion seeker d harmonizer
Answers: 1
Business, 22.06.2019 12:50, sunshine0613
Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.
Answers: 3
You know the right answer?
Suppose the risk-free rate is 1.28% and an analyst assumes a market risk premium of 7.25%. Firm A ju...
Questions in other subjects:
SAT, 18.03.2021 22:50
