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Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to decimal places, e.g., 32.16.)

Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to decimal places, e.g., 32.16.)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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8 Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Transcribed Image Text:8 Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 7 percent, 10 percent, and 13 percent, respectively. What is the stock price for each company? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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