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Youve collected the following information from your favorite financial website. According to your research, the growth rate in dividends for Manta Energy for the previous
Youve collected the following information from your favorite financial website. According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 10 percent. If investors feel this growth rate will continue, what is the required return for the stock?
\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 52 We & Price & \multirow[b]{2}{*}{ Stock (Dividend) } & \multirow{2}{*}{\begin{tabular}{l} Dividend \\ Yield \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} PE \\ Ratio \end{tabular}} & Close & \multirow[b]{2}{*}{ Net } & \multirow[b]{2}{*}{ Change } \\ \hline Hi & Lo & & & & Price & & \\ \hline 77.40 & 10.43 & Acevedo .36 & 2.6 & 6 & 13.90 & & -.24 \\ \hline 55.81 & 33.42 & Georgette, Incorporated 1.54 & 3.8 & 10 & 40.43 & & -.01 \\ \hline 130.93 & 69.50 & YBM 2.00 & 2.2 & 10 & 88.97 & & 3.07 \\ \hline 50.41 & 14.12 & Manta Energy .97 & 6.2 & 6 & 15.60 & & -.26 \\ \hline 35.00 & 20.74 & Winter Sports .32 & 1.5 & 28 & ?? & & .18 \\ \hline \end{tabular}Step by Step Solution
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