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You've collected the following information from your favorite financial website. Dividend Yield % 1.9 2.1 3.9 4.3 1.9 52-Week Price Lo 47.80 70.28 143.13 64.13
You've collected the following information from your favorite financial website. Dividend Yield % 1.9 2.1 3.9 4.3 1.9 52-Week Price Lo 47.80 70.28 143.13 64.13 96.20 Hi 64.60 145.94 181.19 82.56 113.19 Stock (Dividend) a. Stock price b. Required return Acevedo 1.12 Georgette, Incorporated 2.50 YBM 6.45 Manta Energy 3.12 Winter Sports 1.57 PE Ratio 35.6 70.9 23.8 17.6 15.5 % Close Price Net Change 62.91 118.64 165.39 72.56 ?? -.05 -.62 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. Assume the actual closing price for Winter Sports was $80.93. Analysts project a 4 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. .19 .84 .10
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