Consider the following three stocks: 1. Stock A is expected to provide a dividend of $12.00 a share forever. 2. Stock B is expected to pay a dividend of $7.00 next year. Thereafter, dividend growth is expected to be 4.00% a year forever. 3. Stock C is expected to pay a dividend of $4.00 next year. Thereafter, dividend growth is expected to be 20.00% a year for five years (years 2 through 6, as C recovers from a severe recession) and zero thereafter. a-1. If the cost of equity for each stock is 12.00%, what is the stock price for each of the stocks? a-2. Which stock is the most valuable? b-1. If the cost of equity for each stock is 7.00%, what is the stock price for each of the stocks? b-2. Which stock is the most valuable? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Stock A Stock B Stock C If the cost of equity for each stock is 12.00%, what is the stock price for each of the stocks? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock Price Req B1 $ $ Req B2 100.00 87.50

Consider the following three stocks: 1. Stock A is expected to provide a dividend of $12.00 a share forever. 2. Stock B is expected to pay a dividend of $7.00 next year. Thereafter, dividend growth is expected to be 4.00% a year forever: 3. Stock C is expected to pay a dividend of $4.00 next year. Thereafter, dividend growth is expected to be 20.00% a year for five years (years 2 through 6 , as C recovers from a severe recession) and zero thereafter. 0.1. If the cost of equity for each stock is 1200%, what is the stock price for each of the stocks? a-2. Which stock is the most valuable? b-1. If the cost of equity for each stock is 700%, what is the stock price for each of the stocks? b-2. Which stock is the most valuable? Complete this question by entering your answers in the tabs below. If the cost of equity for each stock is 12.00%, what is the stock price for each of the stocks? Note: Do not round intermediate calculations, Round your amwers to 2 decimal places