According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock? You've collected the following information from your favorite financial website.52-Week PriceLo10.4933.42Hi78.0055.81130.9350.2435.00Stock (Dividend)Required returnAcevedo .42Georgette, Incorporated 1.5469.50YBM 2.0013.95Manta Energy .8020.74 Winter Sports .32DividendPEYield % Ratio2.93.82.25.21.5%61010628ClosePrice14.5040.4388.9715.43??According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel thisgrowth 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.Net Change-.24-.013.07-.26.18

Gordon growth model is one of the technique Or method used for calculating expected stock prices. It…

According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock?

According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock?

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

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GottaGrow Corporation has expected earnings per share of $10. It has a history of paying cashdividends equal to 25% of earnings. The market capitalization rate for GottaGrow stock is 10% peryear, and the expected rate of return on future investments is 10% per year. Using the constant growthrate discounted dividend model, what is the expected growth rate of dividends? What is the model’sestimate of the present value of the stock? What is the expected price of a share a year from now?
Gillette's most recent annual dividend was $8 per share. The company expects the growth of its dividends to be stable at 3% per year going forward. a) If investors require a 9% return, what is the current value of Gillette's stock? (round to nearest cent) b) If the stock currently trades at $116.57 per share, what is the dividend growth rate investors expect? (round to nearest percent) Answer in Excel.
Caccamise Company is expected to maintain a constant 5.3 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 7.1 percent, what is the required return on the company's stock?
YZ Inc. is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of 17% during the next 2 years, at 15% the following year, and at a constant rate of 7% during Year 4 and thereafter. Its last dividend was $1.55, and its required rate of return is 12%. a. Calculate the value of the stock today. b. Calculate P1 and P2 (Prices for Year 1 and Year 2). c. Calculate the dividend and capital gains yields for Years 1, 2, and 3.
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Please answer correctly and using excel formula. Please explain don't just wrote excel formula.
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