Consider the following five stocks.

1. Stock A is expected to pay a dividend of $2.50 per share forever, starting in one

   year.

2. Stock B is expected to pay a dividend of $2.50 per share forever, starting today.

3. Stock C is expected to pay a dividend of $1.70 in one year. Dividends are

   expected to grow at 3% per year forever.

4. Stock D is expected to pay the following dividends: D1 (dividend in one year) =

   $1.20, D2 = $1.60, D3 = $1.80, D4 = $2.30. Thereafter dividends are expected to

   remain constant, and equal to $2.30, every year forever.

a. Stock E is expected to pay a dividend of $1 per share in one year (t = 1), which is

expected to grow at 10% for the following 5 years (the last time the dividend grows at 10% is from t = 5 to t = 6). Afterwards, the dividend is expected to grow at 2% per year forever.

The cost of capital is 9.5%. Recall that, according to the Dividend Discount Model, the value of a stock is the present value of all future dividends. What is the value of each stock today, according to the Dividend Discount Model?