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Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.85 next year. The growth rate in dividends for all three companies
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.85 next year. The growth rate in dividends for all three companies is 3 percent. The required return for each company's stock is 8.50 percent, 12.50 percent, and 15.70 percent, respectively. |
Required: | |
(a) | What is the stock price for Red. Inc., Company? |
(b) | What is the stock price for Yellow Corp. Company? |
(c) | What is the stock price for Blue Company? |
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