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Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of K2.35 next year. The growth rate in dividends for all three companies

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of K2.35 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and the stock price?

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