You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Yld % Ratio Price Chg Stock (Div) Palm Coal.42 78.00 10.49 2.9 6 14.50 -.24 Lake Lead Grp 55.81 33.42 3.8 40.43 -.01 130.93 69.50 SIR 2.00 2.2 88.97 3.07 50.24 13.95 DR Dime .80 5.2 15.43 -.26 35.00 20.74 Candy Galore .32 1.5 ?? .18 According to your research, the growth rate in dividends for Palm Coal for the previous 10 years has been 4 percent. If investors feel this growth rate will continue, what is the required return for Palm Coal stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return % 1.54 69680 10 10 28
You've collected the following information from your favorite financial website. 52-Week Price Div PE Close Net Hi Lo Yld % Ratio Price Chg Stock (Div) Palm Coal.42 78.00 10.49 2.9 6 14.50 -.24 Lake Lead Grp 55.81 33.42 3.8 40.43 -.01 130.93 69.50 SIR 2.00 2.2 88.97 3.07 50.24 13.95 DR Dime .80 5.2 15.43 -.26 35.00 20.74 Candy Galore .32 1.5 ?? .18 According to your research, the growth rate in dividends for Palm Coal for the previous 10 years has been 4 percent. If investors feel this growth rate will continue, what is the required return for Palm Coal stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return % 1.54 69680 10 10 28
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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Transcribed Image Text:You've collected the following information from your favorite financial website.
52-Week Price
Div
PE
Close
Net
Hi
Lo
Yld %
Ratio
Price
Stock (Div)
Palm Coal .42
Chg
78.00
10.49
2.9
6
14.50
-.24
Lake Lead Grp
55.81
33.42
3.8
40.43
-.01
130.93
69.50
SIR 2.00
2.2
88.97
3.07
50.24
13.95
DR Dime .80
5.2
15.43
-.26
35.00
20.74 Candy Galore .32
1.5
??
.18
According to your research, the growth rate in dividends for Palm Coal for the previous
10 years has been 4 percent.
If investors feel this growth rate will continue, what is the required return for Palm Coal
stock? (Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Required return
%
1.54
6068
10
10
28
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