Suppose you know that a company’s stock currently sells for $65.30 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield.
Required: If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Required: If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
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