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Suppose you know that a company's stock currently sells for $65.90 per share and required return on the stock is 12 percent. You also know that the total return on stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its divider what is the current dividend per share? (Do not round intermediate calculations round your answer to 2 decimal places, e.g., 32.16.) Dividend per share

Suppose you know that a company's stock currently sells for $65.90 per share and required return on the stock is 12 percent. You also know that the total return on stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its divider what is the current dividend per share? (Do not round intermediate calculations round your answer to 2 decimal places, e.g., 32.16.) Dividend per share

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 3P
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Suppose you know that a company's stock currently sells for $65.90 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between capital gains yield and 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Dividend per share
Transcribed Image Text:Suppose you know that a company's stock currently sells for $65.90 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between capital gains yield and 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Dividend per share
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