You’ve collected the following information from your favorite financial website.52-Week PriceStock (Dividend)Dividend Yield %PE RatioClose PriceNet ChangeHiLo77.4010.43Acevedo .362.6613.90−.2455.8133.42Georgette, Incorporated 1.543.81040.43−.01130.9369.50YBM 2.002.21088.973.0750.2813.99Manta Energy .845.4615.47−.2635.0020.74Winter Sports .321.528??question mark.18According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 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.

Dividend discount model:The dividend discount model (DDM) is a financial valuation technique used…

Answered: Manta Energy .84 5.4 6 15.47 −.26 35.00…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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You’ve collected the following information from your favorite financial website.

52-Week Price	Stock (Dividend)	Dividend Yield %	PE Ratio	Close Price	Net Change
Hi	Lo
77.40	10.43	Acevedo .36	2.6	6	13.90	−.24
55.81	33.42	Georgette, Incorporated 1.54	3.8	10	40.43	−.01
130.93	69.50	YBM 2.00	2.2	10	88.97	3.07
50.28	13.99	Manta Energy .84	5.4	6	15.47	−.26
35.00	20.74	Winter Sports .32	1.5	28	??question mark	.18

According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 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.

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