Stock Valuation And Required Return (LO1] Red, Inc., Yellow Corp., And Blue Company Each Will Pay A Dividend Of $2.20 Next Year. The Growth Rate In Dividends For All Three Companies Is 6 Percent. 2 Required Return For Each Company's Stock Is 8.60 Percent, 12.90 Percent, And 14.80 Percent, Respectively. Required: (A) What Is The Stock Price For Red. 

 

Growth rate in dividends for all three companies is 6 percent. The required return for each company's stock is 8.60 percent, 12.90 percent, and 14.80 percent, respectively. Required: (a) What is the stock price for Red, Inc., Company? (b) What is the stock price for Yellow Corp. Company?  (c) $11.64 $6.60 17.05 $31.88 $36.67 9 P8-9 Stock Valuation and Required Return [LO1] Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.20 next year. The growth rate in dividends.

All three companies is 6 percent. The required return for each company's stock is 8.60 percent, 12.90 percent, and 14.80 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?