Dividend discount model Consider the following three stocks Stock A is expected to provide a dividend of $10 a share forever. Stock B is expected to pay a dividend of $5 next year Thereafter, dividend growth is expected to be 4% a year forever. Stock C is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 20% a year for five years (i.e., until year 6 and zero thereafter. If the market capitalization rate for each stock is 10%, which stock is the most valuable? What if the capitalization rate is 7%