PART 3 Valuation of Future Cash Flows 15.0 19, Valuing Preferred Stock (101) Resnor, Inc., has an issue of preferred stock R- outstanding that pays a $5.50 dividend every year in perpetuity. If this issue 108 currently sells for $108 per share, what is the required return? 9. Stock Valuation and Required Return 911 Red, Ing., Yellow Corp., aod Blue Company each will pay a dividend of $2.35 hext year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stocks is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for P2 each company? What do you conclude about the relationship between the required Teturer and the stock price? imet nor a divident of $9.50 on its