Red inc yellow corp and blue company each will pay a


Question: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.40 next year. The growth rate in dividends for all three companies is 7 percent. The required return for each company's stock is 8.20 percent, 12.50 percent, and 15.20 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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Finance Basics: Red inc yellow corp and blue company each will pay a
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