You've collected the following information from your favorite financial website. 52-Week Price LO 10.55 Acevedo 48 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.60 55.81 130.93 50.24 35.00 Stock (Dividend). Required return Dividend PE Yield Ratio % 3.2 3.8 2.2 5.2 1.5 6 10 10 6 28 Close Price 15.10 40.43 88.97 15.43 77 Net Change -.24 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. -.01 3.07 -.26 .18
You've collected the following information from your favorite financial website. 52-Week Price LO 10.55 Acevedo 48 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 20.74 Manta Energy .80 Winter Sports .32 Hi 78.60 55.81 130.93 50.24 35.00 Stock (Dividend). Required return Dividend PE Yield Ratio % 3.2 3.8 2.2 5.2 1.5 6 10 10 6 28 Close Price 15.10 40.43 88.97 15.43 77 Net Change -.24 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. -.01 3.07 -.26 .18
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
Lo
10.55 Acevedo 48
Hi
78.60
55.81
130.93
50.24
35.00
33.42
69.50
13.95
20.74
Required return
Stock (Dividend).
Georgette, Incorporated 1.541
YBM 2.00
Manta Energy .80
Winter Sports .32
Dividend PE
Yield Ratio
%
3.2
3.8
2.2
5.2
1.5
6
10
10
6
28
Close
Price
15.10
40.43
88.97
15.43
27
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.
Net Change
-.24
-.01
3.07
-.26
.18
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