You've collected thollowing information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 Hi 77.40 55.81 130.93 50.40 35.00 69.50 14.11 Required return Stock (Dividend) YBM 2.00 Manta Energy .96 20.74 Winter Sports .32 Dividend Yield 2.6 3.8 2.2 6.2 % PE Ratio 6 10 10 6 28 Close Price 13.90 40.43 88.97 15.59 ?? According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 12 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
You've collected thollowing information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 Hi 77.40 55.81 130.93 50.40 35.00 69.50 14.11 Required return Stock (Dividend) YBM 2.00 Manta Energy .96 20.74 Winter Sports .32 Dividend Yield 2.6 3.8 2.2 6.2 % PE Ratio 6 10 10 6 28 Close Price 13.90 40.43 88.97 15.59 ?? According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 12 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
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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Question
Transcribed Image Text:You've collected thollowing information from your favorite financial website.
52-Week Price
Lo
10.43 Acevedo .36
33.42 Georgette, Incorporated 1.54
YBM 2.00
Manta Energy .96.
20.74 Winter Sports .32
Hi
77.40
55.81
130.93
50.40
35.00
69.50
14.11
Required return
Stock (Dividend).
Dividend
Yield
%
2.6
3.8
2.2
6.2
1.5
PE
Ratio
6
10
10
6
28
Close
Price
13.90
40.43
88.97
15.59
??
According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 12 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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