The opportunity cost of capital is 10 percent. Which stock has a greater value?

Stock A is expected to pay a cash dividend of $5 per share next year. Thereafter, dividend growth is expected to be 4 percent a year forever.

Stock B is expected to pay $10 in annual cash dividends at the end of years 1, 2, and 3. Then, after paying its year-end 3 dividend of $10, the stock is sold (immediately) for $100.