alyssakretzmeier
05.01.2021 •
Business
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.00 next year. The growth rate in dividends for all three companies is 6 percent. The required return for each company's stock is 9.20 percent, 12.70 percent, and 14.30 percent, respectively. Required:(a) What is the stock price for Red. Inc., Company
Solved
Show answers
More tips
- H Health and Medicine How to Cure Adenoids?...
- H Health and Medicine Why Wearing a Back Brace Can Be Beneficial During Back Strain?...
- S Sport When and Where Will the 2014 World Cup be Held?...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
Answers on questions: Business
- S Social Studies What country claims miguel hidalgo as a revolutionary hero?...
- E English Jennifer and james say they feel close, connected, and committed to each other, but their relationship is no longer exactly what either would call passionate.how would sternberg...
- C Computers and Technology How to make numbers look like whatever its asking for...
Ответ:
Red Inc stock price=$93.75
Yellow Corp stock price=$44.78
Blue company=$36.14
Explanation:
Calculation for What is the stock price
Using this formula
Stock price=D1/(Required return-Growth rate)
Let plug in the formula
Red Inc stock price=3.00/(0.092-0.06)
Red Inc stock price=3.00/0.032
Red Inc stock price=$93.75
Yellow Corp stock price=3.00/(0.127-0.06)
Yellow Corp stock price=3.00/0.067
Yellow Corp stock price=$44.78
Blue company =3.00/(0.143-0.06)
Blue company=3.00/0.083
Blue company=$36.14
Ответ: