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You are the financial advisor of a family who are currently evaluating the following three stocks: tock A is expected to provide a dividend of

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You are the financial advisor of a family who are currently evaluating the following three stocks: tock A is expected to provide a dividend of $7.2 a share forever. s expected to pay a dividend of $4.90 next year. Thereafter, dividend growth vs expected to be 4% a year forever (ii Stock C is expected to pay a dividend of $3.25 next year. Thereafter, dividend growth is expected to be 20% a year for five years (ie, years 2 through 6) and zero thereafter. If the market capitalization rate for each stock is 12%, calculate the value of each stock. (10 marks) a

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