You've collected the following information from your favorite financial website. 52-Week Price Lo 47.80 Acevedo 1.12 70.28 Georgette, Incorporated 2.50 HE 64.60 145.94 181.19 Stock (Dividend) 143.13 YOM 6.45 82.56 64.13 Manta Energy 3.12. 113.19 96.20 Winter Sports 1.57 Required return Dividend PE Yield 1.9 2.1 3.9 1.9 Close Net Change Ratio Price 35.6 62.91 -05 70.9 118.64 -.62 23.8 165.39 17.6 72.56 15.5 77 19 84 .10 According to analysts, the growth rate in dividends for Acevedo for the previous five years has been negative 10.5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4AP
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You've collected the following information from your favorite financial website.
52-Week Price
Lo
47.80 Acevedo 1.12
70.28 Georgette, Incorporated 2.50
143.13
YDM 6.45
64.13
96.20
HI
64.60
145.94
181.19
82.56
113.19
Stock (Dividend)
Manta Energy 3.12
Winter Sports 1.57
Required return
Dividend PE
Yield
Ratio
1.9
2.1
3.9
4.3
1.9
Close
Price
35.6
62.91
70.9
118.64
23.8 165.39
17.6
72.56
15.5
77
Net
Change
-.05
-.62
.19
.84
.10
According to analysts, the growth rate in dividends for Acevedo for the previous five years has been negative 10.5 percent. If investors
feel this growth rate will continue, what is the required return for the company's stock?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer 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 Lo 47.80 Acevedo 1.12 70.28 Georgette, Incorporated 2.50 143.13 YDM 6.45 64.13 96.20 HI 64.60 145.94 181.19 82.56 113.19 Stock (Dividend) Manta Energy 3.12 Winter Sports 1.57 Required return Dividend PE Yield Ratio 1.9 2.1 3.9 4.3 1.9 Close Price 35.6 62.91 70.9 118.64 23.8 165.39 17.6 72.56 15.5 77 Net Change -.05 -.62 .19 .84 .10 According to analysts, the growth rate in dividends for Acevedo for the previous five years has been negative 10.5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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