Consider the following three stocks:

Stock A is expected to provide a dividend of $11.30 a share forever.

Stock B is expected to pay a dividend of $6.30 next year. Thereafter, dividend growth is expected to be 3.00% a year forever.

Stock C is expected to pay a dividend of $4.70 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?

	Stock C
	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 Price
Stock A	$
Stock B	$
Stock C	$

b-2. Which stock is the most valuable?

	Stock A
	Stock B
	Stock C