Suppose you know that a companys stock currently sells for


Stock Valuation

Suppose you know that a company's stock currently sells for $63 per share and the required return on the stock is 10.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a 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?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Suppose you know that a companys stock currently sells for
Reference No:- TGS02224814

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)