Green, Inc., Pink Corp., and White Company each will pay a dividend of $1.85 per share next

Question:

Green, Inc., Pink Corp., and White 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.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...