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Problem 7 - 2 4 Negative Growth [ LO 1 ] You ve collected the following information from your favorite financial website. 5 2 -

Problem 7-24 Negative Growth [LO 1]
Youve collected the following information from your favorite financial website.
52-Week Price Stock (Dividend) Dividend Yield % PE Ratio Close Price Net Change
Hi Lo
77.4010.43 Acevedo .362.6613.90.24
55.8133.42 Georgette, Incorporated 1.543.81040.43.01
130.9369.50 YBM 2.002.21088.973.07
50.2513.96 Manta Energy .815.2615.44.26
35.0020.74 Winter Sports .321.528??question mark .18
According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 12 percent. If investors feel this growth rate will continue, what is the required return for the stock?

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