P$8-9$ Stock Valuation and Required Return $[$LO$1]$

Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of

$$2\mathrm{.}55$ next year. The growth rate in dividends for all three companies is $7$ percent. The

required return for each company's stock is $9\mathrm{.}80$ percent, $12\mathrm{.}10$ percent, and $14\mathrm{.}50$

percent, respectively.

What is the stock price for Red, Incorporated?

Red, Incorporated

What is the stock price for Yellow Corporation?

Yellow Corporation

What is the stock price for Blue Company?