You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 69.80 YBM 2.30 13.95 Manta Energy .80 Winter Sports .32 20.74 Hi 77.40 55.81 130.99 50.24 35.00 Stock (Dividend) Current stock price Dividend PE Yield % Ratio 2.6 3.8 2.6 5.2 1.5 6 10 10 6 28 Close Price 13.90 40.43 89.03 15.43 ?? Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20.5 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.5 percent, indefinitely. Assume investors require a return of 12 percent on YBM stock. According to the dividend growth model, what should the stock price be today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 69.80 YBM 2.30 13.95 Manta Energy .80 Winter Sports .32 20.74 Hi 77.40 55.81 130.99 50.24 35.00 Stock (Dividend) Current stock price Dividend PE Yield % Ratio 2.6 3.8 2.6 5.2 1.5 6 10 10 6 28 Close Price 13.90 40.43 89.03 15.43 ?? Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20.5 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.5 percent, indefinitely. Assume investors require a return of 12 percent on YBM stock. According to the dividend growth model, what should the stock price be today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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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You've collected the following information from your favorite financial website. 52-Week Price Lo 10.49 Acevedo .42 33.42 69.50 13.95 20.74 Hi 78.00 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Georgette, Incorporated 1.54 YBM 2.00 Manta Energy .80 Winter Sports .32 Dividend PE Yield % Ratio 2.9 3.8 2.2 5.2 1.5 % 6 10 10 28 Close Price 14.50 40.43 88.97 15.43 ?? Net Change -.24 -.01 3.07 -.26 · According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 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. 18
Use the following tables to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 3:45PM EDT Aug 16, 2011 Price 18.85 USD Change +0.64 (+3.51%) Mkt cap 147.1B Div/yield 0.20/4.24 Shares 8,012 Beta 0.70 Book/share 11.335 EPS 1.11 12/2010 12/2009 12/2008 (Millions of Dollars) Total Assets 195,014 195,949 111,148 Total Liabilities 107,201 122,935 53,592 Preferred Shareholders’ Equity 52 61 73 Common Shareholders’ Equity 87,761 72,953 57,483 Shares Outstanding 8,012 8,070 6746 Book/Share ? 9.040 8.521 Q1 (Mar ’11) 2010 Net profit margin 15.24% 12.24% Return on equity 11.60% 9.30% Which one in bold? One of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502). Looking at the (Market cap, EPS, change in price, beta value, ROE) ,…
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You've collected the following information from your favorite financial website. 52-Week Price Hi 77.40 55.81 131.08 50.24 35.00 Lo 10.43 33.42 70.25 13.95 20.74 Stock (Div) Palm Coal 0.36 Lake Lead Grp Overvalued 1.54 SIR 2.75 DR Dime 0.80 Candy Galore 0.32 Div PE Yld % Ratio 2.6 6 10 10 6 28 3.8 3.1 5.2 1.5 Close Net Price Chg 13.90 -0.24 40.43 -0.01 89.12 15.43 ?? 3.07 -0.26 0.18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 15 percent on SIR stock. Requirement 1: According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price Requirement 2: Based on these assumptions, is the stock currently overvalued,…
Use the following stock table to find the most recent dividend. 52-WK Week's High Low Tick Vol. Sym 100s Name 16.88 8.78 Idno Tech ITX 32112 5.3 97 13.79 0.09 Yld P/E Last Chg. The most recent dividend for Idno Tech is Earnings Latest This Next Div Year Year Year Amt. 0.35 -0.62-0.01 0.09 ***
You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.96 33.57 Georgette, Incorporated 1.69 4.2 10 40.58 -.01 130.93 69.50 YBM 2.00 2.2 10 88.97 3.07 50.24 35.00 13.95 Manta Energy .80 5.2 15.43 -.26 20.74 winter sports .32 1.5 28 ?? .18 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Highest dividend yield b. Lowest dividend yield -7.54% 3.96 %
Vijay
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 %
1 You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 Hi 77.40 55.81 130.93 50.42 35.00 Stock (Dividend) Required retum 33.42 Georgette, Incorporated 1.54 YBM 2.00 69.50 14.13 Manta Energy .98 20.74 Winter Sports.32 Dividend PE Ratio. Yield % 2,65 3.8 2.2 6.3 1.5 6 10 10 6 28 Close Price: Net Change 13.90 40.43 88.97 15.61 77 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. -24 -.01 3.07 -.26 18
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You've collected the following information from your favorite financial website. 52-Week Price Dividend Hi 77.40 Lo Stock (Dividend) Yield % PE Ratio Close Price Net Change 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 131.10 50.24 35.00 70.35 YBM 2.85 3.2 10 89.14 3.07 13.95 Manta Energy .80 5.2 6 20.74 Winter Sports .32 1.5 28 15.43 ?? -.26 .18 According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 20 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent, indefinitely. Assume investors require a return of 13 percent on YBM stock. According to the dividend growth model, what should the stock price be today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Current stock price

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