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Please help me solve this and show all your steps. 23. Dividend DiscouIIt Model. Consider the following three stocks: a. Stock A is expected to

Please help me solve this and show all your steps.

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23. Dividend DiscouIIt Model. Consider the following three stocks: a. Stock A is expected to provide a dividend of 35 ID a share forever. h. Stock B is expected to pay a dividend of $5 next year. "Thereafter, dividend growth is expected to he 4% a year forever. c. Stock C is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to he 20% a year for 5 years (Le.1 years 2 through ti) and zero thereafter. If the market capitalization rate for each stock is 10%, which stock is the most valuable? 1What if the capitalization rate is 7%? (L012)

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