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Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

a) $10.47

b) $5.23

c) $5.67

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91772677

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