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Problem:

Suppose you know that a company's stock currently sells for $66.50 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield.

Task:

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: Provide specific examples to support your answers.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172797

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