Red, inc., yellow corp., and blue company each will pay a dividend of
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Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.20 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)
|
Stock price |
|
|
Red, Inc. |
$ [removed] |
|
Yellow Corp. |
$ [removed] |
|
Blue Company |
$ [removed] |
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