FIN 370 Week 2 Question and Problem Set (Solutions) Homework | Page 3

6. 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?
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