You've collected the following information from your favorite financial website. 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 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.37 35.00 14.08 Manta Energy .93 6.0 6 15.56 -.26 20.74 Winter Sports .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 13 percent. If investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Required return %
You've collected the following information from your favorite financial website. 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 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.37 35.00 14.08 Manta Energy .93 6.0 6 15.56 -.26 20.74 Winter Sports .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 13 percent. If investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Required return %
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
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
130.93
69.50
YBM 2.00
2.2
10
88.97
3.07
50.37
14.08
Manta Energy .93
6.0
6
35.00
20.74
Winter Sports .32
1.5
28
15.56
??
-.26
.18
According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 13 percent. If
investors feel this growth rate will continue, what is the required return for the stock?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.
Required return
%
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