You've collected the following information from your favorite financial website. 52-Week Price Hi Lo Stock (Dividend)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You've collected the following information from your favorite financial website. 52-Week Price Hi Lo Stock (Dividend) Dividend Yield % PE Close Ratio Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.96 69.65 YBM 2.15 2.4 10 89.00 3.07 50.24 13.95 Manta Energy .80 5.2 6 15.43 -.26 35.00 20.74 Winter Sports .32 1.5 28 ?? .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 14 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. Current stock price Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued? Stock currently You've collected the following information from your favorite financial website. 52-Week Price Hi Lo Stock (Dividend) Dividend Yield % PE Close Ratio Price Net Change 77.40 10.43 Acevedo .36 2.6 6 13.90 -.24 55.81 33.42 Georgette, Incorporated 1.54 3.8 10 40.43 -.01 130.96 69.65 YBM 2.15 2.4 10 89.00 3.07 50.24 13.95 Manta Energy .80 5.2 6 15.43 -.26 35.00 20.74 Winter Sports .32 1.5 28 ?? .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 14 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. Current stock price Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued? Stock currently
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also....
-
Which of the following Fischer projections of glyceraldehydes represent the sameenantiomer? CH- - 3 - -CH- - - CH2 A
-
Make notes about the ideal context for the use of licensing.
-
Internal Control Activities An example of a lack of internal controls with a disastrous result was the bond trading loss in the New York Office of Daiwa Bank in 1995. Over 11 years 30,000...
-
Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par of $10 per share. A month later Elroy resold 900 shares of the treasury stock for $32 per share....
-
Please solve, options are true/false 7 -6 -5 -4 -3 -2/-1 1 2 3 4 5 6 7 O- The function is continuous at a. x = 1. True b. x = 2. True E C. x = 3. True
-
Which of the following concepts limits the availability of specific performance? Mutuality Remoteness Penalty Mitigation Cost of cure
-
Write a short(5-7 sentences long) narrative about an experience you have had with climate change. Your story can be about an extreme weather event that you experienced, a time when the power went...
-
In the epicyclic gear train shown in Fig. 15.36, the compound wheels E and F rotate freely on shaft A which carries the planet carrier G. The planets B and C are compounded gears. The number of teeth...
-
Cyberbullying, or hatred of women online? The term cyberbullying may, in fact, be an attempt to water down or even completely conceal the truth, which is that the Internet is just another place to...
-
You are presented with the following technical information concerning an I section beam and a rectangular box section forming part of the steam plants supporting steel framework and are asked to...
-
Evaluate the impact that the ACA has and will have on the uninsured population in the U.S. Discuss the current successes and failures of this act. Discuss the implications of this act's successes and...
-
A) . Lots of organizations have tried and failed in attempting to outsource product and services to other counties. What they did not realize was it take a considerable amount of time and resources...
-
Distinguish among total-moisture content, free-moisture content, equilibrium-moisture content, unbound moisture, and bound moisture.
-
The data below are selected accounts from the adjusted trial balance of Dans Sports Equipment, Inc., on September 30, 20x6, the fiscal year end. The companys beginning merchandise inventory was...
-
Tonia Company engaged in the following transactions in July 20xx: July 1 Sold merchandise to Su Long on credit, terms n/30, FOB shipping point, $4,200 (cost, $2,520). 3 Purchased merchandise on...
-
Industrial Services Company provides maintenance services to factories in the West Bend, Wisconsin, area. The company, which buys a large amount of cleaning supplies, consistently has been over...
Study smarter with the SolutionInn App