Suppose you know that a companys stock currently sells for $72 per share and the required return
Question:
Suppose you know that a company’s stock currently sells for $72 per share and the required return on the stock is 11.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it is 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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We know the stock has a required return of 115 percent an...View the full answer
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Related Book For 
Corporate Finance
ISBN: 9781259270116
8th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
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