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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 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 Manta Energy .80 20.81 Winter Sports .39 Hi 77.40 55.81 130.93 50.24 35.70 Stock (Dividend) a. Stock price b. Required return Dividend Yield % PE Ratio Close Price Net Change 6 -.24 10 10 6 28 % 2.6 3.8 2.2 5.2 1.5 13.90 40.43 88.97 15.43 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. The actual closing price for Winter Sports was $25.69. Analysts project a 4.5 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. -.01 3.07 -.26 .18

You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 69.50 YBM 2.00 13.95 Manta Energy .80 20.81 Winter Sports .39 Hi 77.40 55.81 130.93 50.24 35.70 Stock (Dividend) a. Stock price b. Required return Dividend Yield % PE Ratio Close Price Net Change 6 -.24 10 10 6 28 % 2.6 3.8 2.2 5.2 1.5 13.90 40.43 88.97 15.43 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. The actual closing price for Winter Sports was $25.69. Analysts project a 4.5 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. -.01 3.07 -.26 .18

Managerial Accounting: The Cornerstone of Business Decision-Making
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 Lo 10.43 33.42 69.50 13.95 Manta Energy .80 20.81 Winter Sports .39 Hi 77.40 55.81 130.93 50.24 35.70 Stock (Dividend) a. Stock price b. Required return Acevedo .36 Georgette, Incorporated 1.54 YBM 2.00 Dividend Yield % PE Ratio Close Price Net Change 6 -.24 -.01 10 10 3.07 -.26 .18 % 2.6 3.8 2.2 5.2 1.5 6 28 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. The actual closing price for Winter Sports was $25.69. Analysts project a 4.5 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 13.90 40.43 88.97 15.43 ??
Transcribed Image Text:You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 33.42 69.50 13.95 Manta Energy .80 20.81 Winter Sports .39 Hi 77.40 55.81 130.93 50.24 35.70 Stock (Dividend) a. Stock price b. Required return Acevedo .36 Georgette, Incorporated 1.54 YBM 2.00 Dividend Yield % PE Ratio Close Price Net Change 6 -.24 -.01 10 10 3.07 -.26 .18 % 2.6 3.8 2.2 5.2 1.5 6 28 a. Using the dividend yield, calculate the closing price for Winter Sports on this day. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. The actual closing price for Winter Sports was $25.69. Analysts project a 4.5 percent dividend growth rate for Winter Sports. What is the required return for the stock using the dividend discount model and the actual stock price? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 13.90 40.43 88.97 15.43 ??
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