You've collected the following information from your favorite financial website. 52-Week Price Lo 10.57 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.80 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Acevedo .50 Dividend Yield % PE Ratio Close Price Net Change -.24 -.01 3.07 -.26 18 % 3.3 3.8 2.2 5.2 1.5 6 10 10 6 28 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel t 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. 15.30 40.43 88.97 15.43

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
10.57
33.42 Georgette, Incorporated 1.54
69.50
YBM 2.00
13.95
20.74
Manta Energy .80
Winter Sports .32
Hi
78.80
55.81
130.93
50.24
35.00
Stock (Dividend)
Required return
Acevedo .50
Dividend
Yield % PE Ratio Close Price Net Change
-.24
-.01
3.07
-.26
18
%
3.3
3.8
2.2
5.2
1.5
6
10
10
6
28
According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel t
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.
15.30
40.43
88.97
15.43
Transcribed Image Text:You've collected the following information from your favorite financial website. 52-Week Price Lo 10.57 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.80 55.81 130.93 50.24 35.00 Stock (Dividend) Required return Acevedo .50 Dividend Yield % PE Ratio Close Price Net Change -.24 -.01 3.07 -.26 18 % 3.3 3.8 2.2 5.2 1.5 6 10 10 6 28 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel t 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. 15.30 40.43 88.97 15.43
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