Suppose you know that a companys stock currently sells for $60 per share and the required return
Question:
Suppose you know that a company’s stock currently sells for $60 per share and the required return on the stock is 14 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’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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Step by Step Answer:
The current dividend per share of the company can be calculated using the following formula Dividend ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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