You’ve collected the following information from your favorite financial website. Use it...

You’ve collected the following information from your favorite financial website. Use it to answer below Question (the 52-week Hi and Lo are the highest and lowest stock prices over the previous 52 weeks).

Negative Growth. According to the 2012 Value Line Investment Survey, the growth rate in dividends for JCPenney for the previous 10 years has been –7.5 percent. If investors feel this growth rate will continue, what is the required return for JCPenney stock? Does this number make sense? What are some of the potential reasons for the negative growth in dividends?