Shad Corporation, Meshach Inc, and Abed Co., will each pay a dividend of $3.65 in the coming year. The required rate of return for their stock is 8%, 11% and 14% respectively. In addition, they each have a growth rate in dividends of 4%. a. What is the stock price of each company? b. What do you surmise is the relationship between the required return and the stock price? (4 marks)

Answer rating: 100% (QA)

Stock Prices and Relationship with Required Return a Stock Price of Each Company We can use the cons... View the full answer