You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Stock (Div) Yld % Ratio Price Chg 64.60 47.80 Abbott 1.12 1.9 235.6 62.91 -.05 145.94 Ralph Lauren 70.28 1.8 70.9 139.71 .62 2.50 171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19 Duke Energy 91.80 71.96 4.9 17.6 74.30 84 3.56 113.19 96.20 Disney 1.68 1.7 15.5 ?? .10 According to your research, the growth rate in dividends for Ralph Lauren for the next 5 years will be .5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return % 13

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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You've collected the following information from your favorite financial website.
52-Week Price
Div
PE
Close
Net
Hi
Lo
Stock (Div)
Yld %
Ratio
Price
Chg
64.60
47.80
Abbott 1.12
1.9
235.6
62.91
-.05
145.94
Ralph Lauren
70.28
1.8
70.9 139.71
.62
2.50
171.13
139.13
IBM 6.30
4.3
23.8
145.39
.19
Duke Energy
91.80
71.96
4.9
17.6
74.30
84
3.56
113.19
96.20
Disney 1.68
1.7
15.5
??
.10
According to your research, the growth rate in dividends for Ralph Lauren for the next 5
years will be .5 percent. If investors feel this growth rate will continue, what is the
required return for the company's stock? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Required return
%
13
Transcribed Image Text:You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Stock (Div) Yld % Ratio Price Chg 64.60 47.80 Abbott 1.12 1.9 235.6 62.91 -.05 145.94 Ralph Lauren 70.28 1.8 70.9 139.71 .62 2.50 171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19 Duke Energy 91.80 71.96 4.9 17.6 74.30 84 3.56 113.19 96.20 Disney 1.68 1.7 15.5 ?? .10 According to your research, the growth rate in dividends for Ralph Lauren for the next 5 years will be .5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return % 13
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