You've collected the following information from your favorite financial website. 52-Week Price НI 77.40 55.81 130.93 50.29 35.00 Lo 10.43 33.42 69.50 14.00 20.74 Stock (Div) Palm Coal .36 Lake Lead Grp 1.54 Required return SIR 2.00 DR Dime.85 Candy Galore 32 Div PE Yld % Ratio 6 26 3.8 96 10 22 10 5.5 6 1.5 28 Close Price 13.90 40.43 88.97 15.48 ?? Net Chg -24 According to your research, the growth rate in dividends for DR Dime for the previous 10 years has been negative 11 percent. -.01 3.07 -26 18 If Investors feel this growth rate will continue, what is the required return for DR Dime stock? (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.)

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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You've collected the following information from your favorite financial website.
52-Week Price
НІ
77.40
55.81
130.93
50.29
35.00
Lo
10.43
33.42
69.50
14.00
20.74
Stock (DIV)
Palm Coal .36
Lake Lead Grp 1.54
SIR 2.00
DR Dime.85
Candy Galore .32
Required return
Div
PE
Yld % Ratio
26
6
3.8
10
2.2
10
5.5
6
1.5 28
%
Close
Price
13.90
40.43
88.97
15.48
??
Net
Chg
-.24
According to your research, the growth rate in dividends for DR Dime for the previous 10
years has been negative 11 percent.
-.01
3.07
-.26
.18
If Investors feel this growth rate will continue, what is the required return for DR Dime
stock? (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.)
Transcribed Image Text:You've collected the following information from your favorite financial website. 52-Week Price НІ 77.40 55.81 130.93 50.29 35.00 Lo 10.43 33.42 69.50 14.00 20.74 Stock (DIV) Palm Coal .36 Lake Lead Grp 1.54 SIR 2.00 DR Dime.85 Candy Galore .32 Required return Div PE Yld % Ratio 26 6 3.8 10 2.2 10 5.5 6 1.5 28 % Close Price 13.90 40.43 88.97 15.48 ?? Net Chg -.24 According to your research, the growth rate in dividends for DR Dime for the previous 10 years has been negative 11 percent. -.01 3.07 -.26 .18 If Investors feel this growth rate will continue, what is the required return for DR Dime stock? (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.)
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