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    Many companies with equal risk; which will have the highest stock prices?

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    Assume you are looking at many companies with equal risk; which ones will have the highest stock prices?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:16 pm ad1c9bdddf
    https://brainmass.com/business/finance/many-companies-with-equal-risk-which-will-have-the-highest-stock-prices-53938

    Solution Preview

    By the DDM model, we have the stock pricing formula:
    P = D1 / (k-g)
    where D1 is the dividend next ...

    Solution Summary

    The solution shows the formula, explains the formula and tells which types of companies will have the higher stock prices.

    $2.19

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