Problem:
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.85 per share next year. The expected annual growth rate in dividends for all three companies' stocksis 3 percent. The expected return for each company's stock is 8.7 percent, 11 percent, and 14 percent, respectively.
Required:
Question: What is the stock price for each company?
Note: Show supporting computations in good form.