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PLEASE HELP WITH A-1 AND B-1 Consider the following three stocks a. Stock A is expected to provide a dividend of $10.50 a share forever

image text in transcribedPLEASE HELP WITH A-1 AND B-1

Consider the following three stocks a. Stock A is expected to provide a dividend of $10.50 a share forever b. Stock B is expected to pay a dividend of $5.50 next year. Thereafter, dividend growth is expected to be 4.00% a year forever c. Stock C is expected to pay a dividend of $5.50 next year. Thereafter, dividend growth is expected to be 20.00% 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 10.00%, 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 A Stock B Stock b-1. If the market capitalization rate for each stock is 7.00%, 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

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