Consider the following three stocks. Stock A is expected to provide a dividend of $10 per share forever. Stock B is expected to pay a dividend of $5 next year, after which dividends are expected to grow forever at 5.4%. Finally, Stock C is expected to pay a dividend of $2 in two years after which dividend growth is expected to be 18% per year for 8 more years and no further growth in dividends thereafter.

a. If the required rate of return (r) for each stock is 12%, which stock is the most valuable?