You have the following non-constant growth stock, D0 = 1.15, g = 4.50%, ks = 8.0%. The dividend is expected to grow by 25% in year 1, 20% in year 2, 15% in year 3, and then by a constant growth rate of 4.5% to infinity. What is P13 for this stock?

$51.40

$83.41

$91.98

$84.23

$80.60

Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Stock A price is $25, Expected growth is 7%, and Expected Return is 10%. Stock B price is $40, Expected growth is 9%, and Expected Return is 12%.

The two stocks should have the same expected dividend.

A's expected dividend is $0.50.

The two stocks could not be in equilibrium with the numbers given in the question.

A's expected dividend is $0.75 and B's expected dividend is $1.20.

B's expected dividend is $0.75.