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TOU've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 Hi 77.40 55.81 131.00
TOU've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.42 Georgette, Incorporated 1.54 Hi 77.40 55.81 131.00 50.24 35.00 Stock (Dividend): 69.85 YBM 2.35 13.95 Manta Energy 80 20.74 Winter Sports .32 Answer is complete but not entirely correct. Current stock price S 60.44 Dividend PE Yield Ratio 2.6 3.8 2.6 Answer is complete and correct. 5.2 1.5 6 10 10 6 28 Close Price 13.90 40.43 89.04 15.43 77 Net Change -.24 -.01 3.07 -.26 .18 According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 21 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent, indefinitely. Assume investors require a return of 13 percent on YBM stock. According to the dividend growth model, what should the stock price be today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued? Return to que
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