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 69.50 YBM 2.00 14.00 Manta Energy .85 20.74 Winter Sports .32 Hi 77.40 55.81 130.93 50.29 35.00 Stock (Dividend) Dividend PE Yield Ratio 2.6 3.8 2.2 5.5 1.5 6 10 10 6 28 Close Price Net Change 13.90 40.43 88.97 15.48 77 -.24 -.01 3.07 -.26 .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 11 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.

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
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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
69.50 YBM 2.00
14.00
Hi
77.40
55.81
130.93
50.29
35.00
Stock (Dividend)
Manta Energy 85
20.74 Winter Sports .32
Answer is complete but not entirely correct.
Required return
-10.35
Dividend PE
Yield
2.6
3.8
2.2
5.5
1.5
Ratio
6
10
10
6
28
Close
Price
13.90
40.43
88.97
15.48
??
According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 11 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.
Net Change
-.24
-.01
3.07
-.26
.18
Transcribed Image Text: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 69.50 YBM 2.00 14.00 Hi 77.40 55.81 130.93 50.29 35.00 Stock (Dividend) Manta Energy 85 20.74 Winter Sports .32 Answer is complete but not entirely correct. Required return -10.35 Dividend PE Yield 2.6 3.8 2.2 5.5 1.5 Ratio 6 10 10 6 28 Close Price 13.90 40.43 88.97 15.48 ?? According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 11 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. Net Change -.24 -.01 3.07 -.26 .18
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