You've collected the following information from your favorite financial website. Dividend PE Yield % Ratio 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 14.07 Manta Energy .92 20.74 Winter Sports .32 Hi 77.40 55.81 130.93 50.36 35.00 Stock (Dividend) 2.6 3.8 2.2 5.9 1.5 6 10 10 6 28 Close Price 13.90 40.43 88.97 15.55 ?? 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 10 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.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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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
69.50
14.07
Manta Energy .92
20.74 Winter Sports .32
Hi
77.40
55.81
130.93
50.36
35.00
Stock (Dividend)
Required return
Georgette, Incorporated 1.54
YBM 2.00
Dividend PE
Yield % Ratio
%
2.6
3.8
2.2
5.9
1.5
6
10
10
6
28
Close
Price Net Change
13.90
40.43
88.97
15.55
??
According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 10
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.
-.24
-.01
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 69.50 14.07 Manta Energy .92 20.74 Winter Sports .32 Hi 77.40 55.81 130.93 50.36 35.00 Stock (Dividend) Required return Georgette, Incorporated 1.54 YBM 2.00 Dividend PE Yield % Ratio % 2.6 3.8 2.2 5.9 1.5 6 10 10 6 28 Close Price Net Change 13.90 40.43 88.97 15.55 ?? According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 10 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. -.24 -.01 3.07 -.26 .18
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