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Consider the following three stocks: 1. Stock A is expected to provide a dividend of $11,50 a share forever 2. Stock 8 is expected to

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Consider the following three stocks: 1. Stock A is expected to provide a dividend of $11,50 a share forever 2. Stock 8 is expected to pay a dividend of $6.50 nekt yeac Thereafter dividend growth is expected to be 4.00% a year forevec. 3. Stock C is expected to poy a cividend of $4.50 next year. Thereafter, dividend growth is expected to be 20.00% a year for five years 6 years 2 through 6 . as C recovers from a severe recessioni) and zero thereaftet. a-1. If the cost of equify for each sock is 10.005, what is the stock price for eoch of the stocks? a-2. Which stock is the most valuable? b-1. If the cost of equity for each stock is 7000, what is the stock price for each of the stocks? b-2. Which stock is the most valuabie? Consider the following three stocks: 1. Stock A is expected to provide a dividend of $11,50 a share forever 2. Stock 8 is expected to pay a dividend of $6.50 nekt yeac Thereafter dividend growth is expected to be 4.00% a year forevec. 3. Stock C is expected to poy a cividend of $4.50 next year. Thereafter, dividend growth is expected to be 20.00% a year for five years 6 years 2 through 6 . as C recovers from a severe recessioni) and zero thereaftet. a-1. If the cost of equify for each sock is 10.005, what is the stock price for eoch of the stocks? a-2. Which stock is the most valuable? b-1. If the cost of equity for each stock is 7000, what is the stock price for each of the stocks? b-2. Which stock is the most valuabie

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