What is the stock price for each company

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Reference no: EM13932734

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%. The required return for each company's stock is 8%, 11% and 14% respectively.

1) What is the stock price for each company?

2) What do you conclude about the relationship between the required return and the stock price?

Reference no: EM13932734

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