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

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You are the financial advisor of a family who are currently evaluating the following the following three stocks: Stock A is expected to provide a dividend of $10 a share forever. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 4% a year forever. Stock C is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 20% a year for five years i.e., years 2 through 6) and zero thereafter. a) If the market capitalization rate for each stock is 10%, calculate the value of each stock. (15 Marks) b) If the current market price of these three stocks are as follows: Stock A-94 Stock B -98 Stock C-84.51 Advise the best investment opportunity. Justify your

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