You've collected the following information from your favorite financial website. 52-Week Price Lo 10.50 Acevedo .43 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 78.10 55.81 130.93 50.24 35.00 Stock (Dividend) Dividend PE Yield Ratio 2.9 3.8 2.2 5.2 1.5 6 10 10 6 28 Close Price 14.60 40.43 88.97 15.43 77 Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4.25 percent. If investors feel growth rate will continue, what is the required return for the company's stock? 22 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
10.50 Acevedo .43
33.42 Georgette, Incorporated 1.54
YBM 2.00
Hi
78.10
55.81
130.93
50.24
35.00
Stock (Dividend).
Required return
69.50
13.95
Manta Energy .80
20.74 Winter Sports .32
Dividend
Yield
2.9
3.8
2.2
5.2
1.5
PE
Ratio
6
10
10
6
28
Close
Price
14.60
40.43
88.97
15.43
27
Net Change
-.24
-.01
3.07
-.26
.18
According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4.25 percent. If investors feel the
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.
Transcribed Image Text:You've collected the following information from your favorite financial website. 52-Week Price Lo 10.50 Acevedo .43 33.42 Georgette, Incorporated 1.54 YBM 2.00 Hi 78.10 55.81 130.93 50.24 35.00 Stock (Dividend). Required return 69.50 13.95 Manta Energy .80 20.74 Winter Sports .32 Dividend Yield 2.9 3.8 2.2 5.2 1.5 PE Ratio 6 10 10 6 28 Close Price 14.60 40.43 88.97 15.43 27 Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4.25 percent. If investors feel the 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.
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