According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.75 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.75 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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Question
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Transcribed Image Text:You've collected the following information from your favorite financial website.
52-Week Price
Lo
10.56 Acevedo .49
Hi
78.70
55.81
130.93
50.24
35.00
Stock (Dividend)
Required return
Georgette, Incorporated 1.54
YBM 2.00
33.42
69.50
13.95
Manta Energy .80
20.74 Winter Sports .32
Dividend PE
Yield
Ratio
3.2
3.8
2.2
5.2
1.5
6
10
10
6
28
Close
Price Net Change
15.20
-.24
40.43
-.01
88.97
3.07
15.43
-.26
??
.18
According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.75 percent. If investors feel this
growth rate will continue, what is the required return for the company's stock?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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