Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $1.50 next year. The growth rate in dividends for all three companies is 7 percent. The required return for each company's stock is 8.70 percent, 13.10 percent, and 14.50 percent, respectively.      What is the stock price for Red, Incorporated?          What is the stock price for Yellow Corporation?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
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Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $1.50 next year. The growth rate in dividends for all three companies is 7 percent. The required return for each company's stock is 8.70 percent, 13.10 percent, and 14.50 percent, respectively.

   

 What is the stock price for Red, Incorporated?
 
 

   

 What is the stock price for Yellow Corporation?
 
 
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