Calculate the stock price for company

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Calculate the stock price for each company.

Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return fo each company's stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company?

Dividend next year $2.65

Dividend growth rate 5%

Red required return 8%

Yellow required return 11%

Blue required return 14%

Complete the following analysis. Do not hard core values in the calculation.

Red price _____________________

Yellow price _______________________

Blue price _______________________

Reference no: EM132764401

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