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Consider the following three stocks: a. Stock A is expected to provide a dividend of $11.80 a share forever b. Stock B is expected to

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Consider the following three stocks: a. Stock A is expected to provide a dividend of $11.80 a share forever b. Stock B is expected to pay a dividend of $6.80 next year. Thereafter, dividend growth is expected to be 3.00% a year forever. C. Stock C is expected to pay a dividend of $4.20 next year. Thereafter dividend growth is expected to be 19.00% a year for five years (i.e. years 2 through 6) and zero thereafter a-1. If the market capitalization rate for each stock is 9.00%, what is the stock price for each of the stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock Price Stock A Stock B Stock C a-2. Which stock is the most valuable? Slack Stock B Stock A b-1. If the market capitalization rate for each stock is 6.00%, what is the stock price for each of the stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock A Stock B Stock C b-2. Whlch stock Is the most valuable? Stock A StockB Stock C References eBook &Resources

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