Calculate the required return

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Reference no: EM131859773

Calculate the required return.

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.90 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 8.80 percent, 11.90 percent, and 14.40 percent, respectively.

Dividend Paid = $1.89

Dividend Growth Rate = 5%

Stock Price = $38.00

Reference no: EM131859773

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