You've collected the following information from your favorite financial website. 52-Week Price Lo 10.49 Acevedo .42 Hi 78.00 55.81 130.93 50.24 35.00 Stock (Dividend) Required return 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Dividend PE Yield % Ratio % 2.9 3.8 2.2 5.2 1.5 6 10 10 6 28 Close Price Net Change 14.50 40.43 88.97 15.43 ?? 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. -.24 -.01 3.07 -.26 .18

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
10.49 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
Transcribed Image Text: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
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