According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock? You've collected the following information from your favorite financial website.52-Week PriceLo10.4933.42Hi78.0055.81130.9350.2435.00Stock (Dividend)Required returnAcevedo .42Georgette, Incorporated 1.5469.50YBM 2.0013.95Manta Energy .8020.74 Winter Sports .32DividendPEYield % Ratio2.93.82.25.21.5%61010628ClosePrice14.5040.4388.9715.43??According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4 percent. If investors feel thisgrowth 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.Net Change-.24-.013.07-.26.18

Gordon growth model is one of the technique Or method used for calculating expected stock prices. It…

According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock?

According to analysts, the growth rate in dividends for Acevedo for the previous 10 years has been 4%. If investors feel this growth rate will continue, what is the required return for the companys stock?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4AP

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Question

You've collected the following information from your favorite financial website.
52-Week Price
Lo
10.49
33.42
Hi
78.00
55.81
130.93
50.24
35.00
Stock (Dividend)
Required return
Acevedo .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
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.
Net Change
-.24
-.01
3.07
-.26
.18

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