You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi 78.20 Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 10.51 Acevedo .44 3.0 6 14.70 -.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 50.24 35.00 13.95 20.74 Manta Energy .80 Winter Sports .32 5.2 1.5 6 15.43 -.26 28 ?? .18 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.5 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. Required return 6.86%
You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi 78.20 Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 10.51 Acevedo .44 3.0 6 14.70 -.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 50.24 35.00 13.95 20.74 Manta Energy .80 Winter Sports .32 5.2 1.5 6 15.43 -.26 28 ?? .18 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.5 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. Required return 6.86%
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
Hi
78.20
Lo
Stock (Dividend)
Yield % PE Ratio Close Price Net Change
10.51
Acevedo .44
3.0
6
14.70
-.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
50.24
13.95
Manta Energy .80
5.2
6
15.43
-.26
35.00
20.74
Winter Sports .32
1.5
28
??
.18
According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 3.5
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.
Required return
6.86 %
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