52-Week Price Dividend PE Close Hi Lo Stock (Dividend) Yield % Ratio Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.98 69.75 YBM 2.25 2.5 10 89.02 3.07 50.24 13.95 Manta Energy .80 35.00 20.74 Winter Sports .32 5.2 1.5 6 15.43 -.26 28 ?? .18 cording to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assum estors require a return of 15 percent on YBM stock. According to the dividend growth model, what should the stock price be te: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) urrent stock price
52-Week Price Dividend PE Close Hi Lo Stock (Dividend) Yield % Ratio Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.98 69.75 YBM 2.25 2.5 10 89.02 3.07 50.24 13.95 Manta Energy .80 35.00 20.74 Winter Sports .32 5.2 1.5 6 15.43 -.26 28 ?? .18 cording to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assum estors require a return of 15 percent on YBM stock. According to the dividend growth model, what should the stock price be te: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) urrent stock price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![52-Week Price
Dividend
PE
Close
Hi
Lo
Stock (Dividend)
Yield %
Ratio
Price
Net Change
77.40
10.43
Acevedo .36
2.6
6
13.90
-.24
55.81
33.42
Georgette, Incorporated 1.54
3.8
10
40.43
-.01
130.98
69.75
YBM 2.25
2.5
10
89.02
3.07
50.24
13.95
Manta Energy .80
35.00
20.74
Winter Sports 32
5.2
1.5
6
15.43
-.26
28
??
.18
According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM meets
this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assume
investors require a return of 15 percent on YBM stock. According to the dividend growth model, what should the stock price be today?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current stock price
Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?
Stock currently](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f41057e-3e46-41fa-823e-2959297f9ac2%2F4ac05222-49f8-46fd-97f8-0614b8ad8920%2F6q2wz7i_processed.png&w=3840&q=75)
Transcribed Image Text:52-Week Price
Dividend
PE
Close
Hi
Lo
Stock (Dividend)
Yield %
Ratio
Price
Net Change
77.40
10.43
Acevedo .36
2.6
6
13.90
-.24
55.81
33.42
Georgette, Incorporated 1.54
3.8
10
40.43
-.01
130.98
69.75
YBM 2.25
2.5
10
89.02
3.07
50.24
13.95
Manta Energy .80
35.00
20.74
Winter Sports 32
5.2
1.5
6
15.43
-.26
28
??
.18
According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM meets
this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assume
investors require a return of 15 percent on YBM stock. According to the dividend growth model, what should the stock price be today?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current stock price
Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?
Stock currently
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