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Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.65 next year. The growth rate in dividends for all three companies

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.65 next year. The growth rate in dividends for all three companies is 4%. The required return for each companys stock is 8%, 11% and 14% respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and stock price?

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