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Stock A is expected to provide a dividend of $11.40 a share forever. Stock B is expected to pay a dividend of $6.40 next year.

  1. Stock A is expected to provide a dividend of $11.40 a share forever.
  2. Stock B is expected to pay a dividend of $6.40 next year. Thereafter, dividend growth is expected to be 2.00% a year forever.
  3. Stock C is expected to pay a dividend of $4.60 next year. Thereafter, dividend growth is expected to be 18.00% a year for five years (i.e., years 2 through 6) and zero thereafter.

If the market capitalization rate for each stock is 8.00%, what is the stock price for each of the stocks?

1- (A) stock price?

2- (B) stock price?

3- (C) stock price?

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