Question: R = Dividend yield + Capital gains yield = 0.105 Dividend yield = Capital gains yield = 0.105 2 = 0.0525 D1= Dividend yield
R = Dividend yield + Capital gains yield = 0.105 Dividend yield = Capital gains yield = 0.105 ÷ 2 = 0.0525 D1= Dividend yield (D₁ / P₀) × Current stock price (P₀) = 0.0525 × 63 = $3.31 D₀=D₁ / 1+g = 3.31 / 1.0525 = $3.14 Thus, the current dividend per share is -------------.
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