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P8-9 Stock Valuation and Required Return (LO1] Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.80 next year. The growth
P8-9 Stock Valuation and Required Return (LO1] Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.80 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 8.70 percent, 12.50 percent, and 15.10 percent, respectively. Required: (a) What is the stock price for Red. Inc., Company? (Click to select) v (b) What is the stock price for Yellow Corp. Company? (Click to select) v (c) What is the stock price for Blue Company? (Click to select)
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