You've collected the following information from your favorite financial website. 52-Week Price Lo 47.80 70.28 143.13 Hi 64.60 145.94 181.19 82.56 113.19 Stock (Dividend) a. Stock price b. Required return Acevedo 1.12 Georgette, Incorporated 2.50 YBM 6.45 64.13 Manta Energy 3.12 96.20 Winter Sports 1.57 PE Close Dividend Yield % Ratio Price 1.9 35.6 2.1 62.91 70.9 118.64 23.8 165.39 3.9 4.3 17.6 72.56 1.9 15.5 ?? Net Change -.05 -.62 .19 .84 .10 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. Assume the actual closing price for Winter Sports was $80.93. Analysts project a 4 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

You've collected the following information from your favorite financial website. 52-Week Price Lo 47.80 70.28 143.13 Hi 64.60 145.94 181.19 82.56 113.19 Stock (Dividend) a. Stock price b. Required return Acevedo 1.12 Georgette, Incorporated 2.50 YBM 6.45 64.13 Manta Energy 3.12 96.20 Winter Sports 1.57 PE Close Dividend Yield % Ratio Price 1.9 35.6 2.1 62.91 70.9 118.64 23.8 165.39 3.9 4.3 17.6 72.56 1.9 15.5 ?? Net Change -.05 -.62 .19 .84 .10 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. Assume the actual closing price for Winter Sports was $80.93. Analysts project a 4 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: 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

Problem 1PS

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3. Mando Inc. next year earnings per share is expected to be $7. Its return on equity is 20%, which is expected to remain for the foreseeable future. The market required return is 12%. a. Mando Inc. maintains an 80% dividend payout ratio. Calculate the Mando Inc. stock price and NPVGO. b. Calculate Mando Inc. stock price and NPVGO if Mando Inc. management chooses an 95% dividend payout policy.
Need help with answers for B and C please The Evanec Company's next expected dividend, D1, is $3.50; its growth rate is 5%; and its common stock now sells for $38.00. New stock (external equity) can be sold to net $34.20 per share. A) What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.rs = % B) What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.F = % C) What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %
You've collected the following information from your favorite financial website. 52-Week Price LO 10.43 33.42 70.00 13.95 20.74 Hi 77.40 55.81 131.03 50.24 35.00 Stock (Dividend) Current stock price Acevedo .36 Georgette, Incorporated 1.54 YBM 2.50 Manta Energy .80 Winter Sports .32 Dividend PE Yield & 2.6 3.8 2.8 5,2 1.5 Ratio 6 10 10 6 28 Close Price. 13.90 40.43 89.07 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 15 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.)
ou'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 Stock (Dividend). Required return 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 Manta Energy .80 13.95 20.74 Winter Sports .32 Dividend PE Yield & 3.2 3.8 2.2 5.2 1.5 % Ratio 6 10 10 6 28 Close Price 15.10 40.43 88.97 15.43 ?? 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
What is the equations you use for the questions below to solve in excel?
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
need help on all
Destin Company Information: Total Assets $940,000 Total Liabilities $600,000 Cost of debt 5.8% Risk-free rate 1.97% Beta 0.89 Market Return 10% A) Using CAPM, what is cost of equity? (so you are not confused, the opportunity cost of using equity is the return we were expecting to receive on the equity). a)8.03% b)7.77% c) 9.12% d) 8.9% B) What is Destin's Weighted Average Cost of Capital? a) 6.22% b) 5.89% c) 6.07% d) 5.72%
You have assigned the following values to these three firms: Upcoming Dividend $3.15 US Bancorp Praxair Eastman Kodak 2 Price $115.50 57.10 27.45 US Bancorp required return Praxair required return Eastman Kodak required return 1.18 1.00 CAPM % % Growth 9.00% Assume that the market portfolio will earn 12.70 percent and the risk-free rate is 3.40 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations and round your final answers to 2 decimal places.) % 14.50 9.20 Beta 1.42 2.14 1.84 Constant-Growth Model % % %
aa.3
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