Answer:
Red Inc: Current price=$91.25
Yellow Corp: Current price=$52.14(Approx).
Blue Company: Current price=$36.50
Explanation:
Current price=D1/(Required return-Growth rate)
Red Inc:
Current price=3.65/(0.08-0.04)=$91.25
Yellow Corp:
Current price=3.65/(0.11-0.04)=$52.14(Approx).
Blue Company:
Current price=3.65/(0.14-0.04)=$36.50