Suppose you know that a company stock currently sells for $59 a


Question Description:

25

Suppose you know that a company stock currently sells for $59 a share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between capital gains yield and a dividend yield. IF if’s the company’s policy to always maintain a constant growth rate on its dividends, what is the current dividend per share?

Answer

25