Problem 7-21 Dividend Yield [LO 3] You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.52 Georgette, Incorporated 1.64 69.50 YBM 2.00 13.95 Manta Energy .80 5.2 20.74 Winter Sports .32 1.5 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Hi 77.40 55.91 130.93 50.24 35.00 a. Highest dividend yield b. Lowest dividend yield Stock (Dividend) % Dividend PE Yield 2.6 4.0 2.2 Ratio 6 10 10 6 28 Close Price 13.90 40.53 88.97 15.43 77 Net Change -.24 -.01 3.07 -.26 .18

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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Problem 7-21 Dividend Yield [LO 3]
You've collected the following information from your favorite financial website.
52-Week Price
Lo
10.43 Acevedo .36
33.52 Georgette, Incorporated 1.64
69.50 YBM 2.00
13.95
Manta Energy .80
20.74 Winter Sports .32
Hi
77.40
55.91
130.93
50.24
35.00
a. Highest dividend yield
b. Lowest dividend yield
Stock (Dividend)
Current share price
Dividend PE
Yield
Ratio
%
%
2.6
4.0
2.2
5.2
1.5
6
10
10
6
28
Close
Price
13.90
40.53
88.97
15.43
77
Find the quote for the Georgette, Incorporated. Assume that the dividend is constant.
a. What was the highest dividend yield over the past year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. What was the lowest dividend yield over the past year?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Net Change
-.24
-.01
3.07
-.26
.18
Problem 7-16 Nonconstant Dividends [LO 1]
Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $7.65 per share and has announced that it
will increase the dividend by $10.25 per share for each of the next four years, and then never pay another dividend. If you require a
return of 16 percent on the company's stock, how much will you pay for a share today?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Transcribed Image Text:Problem 7-21 Dividend Yield [LO 3] You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo .36 33.52 Georgette, Incorporated 1.64 69.50 YBM 2.00 13.95 Manta Energy .80 20.74 Winter Sports .32 Hi 77.40 55.91 130.93 50.24 35.00 a. Highest dividend yield b. Lowest dividend yield Stock (Dividend) Current share price Dividend PE Yield Ratio % % 2.6 4.0 2.2 5.2 1.5 6 10 10 6 28 Close Price 13.90 40.53 88.97 15.43 77 Find the quote for the Georgette, Incorporated. Assume that the dividend is constant. a. What was the highest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What was the lowest dividend yield over the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Net Change -.24 -.01 3.07 -.26 .18 Problem 7-16 Nonconstant Dividends [LO 1] Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $7.65 per share and has announced that it will increase the dividend by $10.25 per share for each of the next four years, and then never pay another dividend. If you require a return of 16 percent on the company's stock, how much will you pay for a share today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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