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Problem:

Suppose you know that a company's stock currently sells for $65.60 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield.

Required:

Question: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172156

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