If its the companys policy is to always maintain a constant


Suppose you know a company's stock that currently sells for $80 per share and the required return on the stock is 8 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 is to always maintain a constant growth rate in its dividends, what is the current dividend per share?

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Finance Basics: If its the companys policy is to always maintain a constant
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