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Question 3 ( 2 0 points ) Consider the following three stocks: Stock A is expected to provide a dividend of $ 2 0 a

Question 3(20 points)
Consider the following three stocks:
Stock A is expected to provide a dividend of $20 a share forever.
Stock B is expected to pay a dividend of $12 per share at the end of the first year.
Thereafter, dividend growth is expected to be 5% a year forever.
Stock C is expected to pay a dividend of $10 per share at the end of the first year.
Thereafter, dividend growth is expected to be 20% a year for four years (i.e., until time
,0% for the next 10 years (i.e., until time 15), and then 5% a year forever.
If the market capitalization rate for each stock is 10%, what is the share price of each stock
Express final answers to the nearest penny.
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