consider the following three stocks:

Stock A is expected to provide a dividend of $10.70 a share forever.

Stock B is expected to pay a dividend of $5.70 next year. Thereafter, dividend growth is expected to be 6.00% a year forever.

Stock C is expected to pay a dividend of $5.70 next year. Thereafter, dividend growth is expected to be 22.00% 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 12.00%, 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 price
stock A
Stock B
Stock C

a-2. Which stock is the most valuable?

Stock A

Stock B

Stock C

b-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

b-2.Which stock is the most valuable?