You've collected the following information from your favorite financial website. Dividend PE Yield 2.6 3.8 2.2 5.7 1.5 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 Hi 77.40 55.81 130.93 50.32 35.00 Stock (Dividend) 14.03 Manta Energy .88 20.74 Winter Sports .32 Ratio 6 10 10 6 28 Close Price 13.90 40.43 88.97 15.51 ?? Net Change -.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 13 percent. If nvestors 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
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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
14.03
Manta Energy .88
20.74 Winter Sports .32
Hi
77.40
55.81
130.93
50.32
35.00
Stock (Dividend)
Required return
%
Dividend PE
Yield
Close
Ratio Price
13.90
40.43
88.97
15.51
??
2.6
3.8
2.2
5.7
1.5
6
10
10
6
28
Net
Change
-.24
-.01
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.
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 14.03 Manta Energy .88 20.74 Winter Sports .32 Hi 77.40 55.81 130.93 50.32 35.00 Stock (Dividend) Required return % Dividend PE Yield Close Ratio Price 13.90 40.43 88.97 15.51 ?? 2.6 3.8 2.2 5.7 1.5 6 10 10 6 28 Net Change -.24 -.01 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. 3.07 -.26 .18
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