Problem 8-1 Stock Values (L01) The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. a. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the stock price be in 3 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the stock price be in 14 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current price Stock price in 3 years Stock price in 14 years c. Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.10 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each company's stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Red, Inc. Yellow Corp Blue Company