Question: ( c ) . Suppose you know that a company's stock currently sells for $ 5 6 per share and the required return on the

(

) .

Suppose you know that a company's stock currently sells for $

56

per share and the required return on the stock is

8 % .

You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If the company's policy is to always maintain a constant growth rate in its dividends, what is the current dividend per share

(D_{0}) ?

What is the expected stock price six years from now?

Solve with finance calculator

(c). Suppose you know that a company's stock currently sells for

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