You also know that the total return on the stock is evenly


Suppose you know that a company's current stock 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: You also know that the total return on the stock is evenly
Reference No:- TGS02185080

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)