Question: Question 3 ( 2 0 points ) Consider the following three stocks: Stock A is expected to provide a dividend of $ 2 0 a
Question points
Consider the following three stocks:
Stock is expected to provide a dividend of $ a share forever.
Stock is expected to pay a dividend of $ per share at the end of the first year.
Thereafter, dividend growth is expected to be a year forever.
Stock is expected to pay a dividend of $ per share at the end of the first year.
Thereafter, dividend growth is expected to be a year for four years ie until time
for the next years ie until time and then a year forever.
If the market capitalization rate for each stock is what is the share price of each stock
Express final answers to the nearest penny.
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