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You have the following information about two common stocks: Stock A 1.50 21.20 Stock B 4.00 48.00 Current cash dividend per share (+) Current share

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You have the following information about two common stocks: Stock A 1.50 21.20 Stock B 4.00 48.00 Current cash dividend per share (+) Current share price () Expected for 3 years: Growth rate Required return Expected thereafter: Growth rate Required return 10% 20% 6% 14% 5% 16% 6% 14% For each stock, calculate: a. Its present value per share b. Based on your calculations, are the current prices attractive? Explain

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