Consider the following three stocks:

a.	Stock A is expected to provide a dividend of $11.40 a share forever.
b.	Stock B is expected to pay a dividend of $6.40 next year. Thereafter, dividend growth is expected to be 2% a year forever.
c.	Stock C is expected to pay a dividend of $4.60 next year. Thereafter, dividend growth is expected to be 18% a year for five years (i.e., until year 6) and zero thereafter.

a-1.	If the market capitalization rate for each stock is 8%, 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?

	Stock C
	Stock B
	Stock A

b-1.	If the market capitalization rate for each stock is 5%, 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	$

b-2.

Which stock is the most valuable?