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Problem:

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $1.85 per share next year. The expected annual growth rate in dividends for all three companies' stocksis 3 percent. The expected return for each company's stock is 8.7 percent, 11 percent, and 14 percent, respectively.

Required:

Question: What is the stock price for each company?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169452

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