The required return for each companys stock is 5 percent 8


Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.95 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each company's stock is 5 percent, 8 percent, and 11 percent, respectively. What is the stock price for each company?

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Finance Basics: The required return for each companys stock is 5 percent 8
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