Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose you know a company's stock currently sells for $69 per share and the required return on the stock is 0

Suppose you know a company's stock currently sells for $69 per share and the required return on the stock is 0

Finance

Suppose you know a company's stock currently sells for $69 per share and the required return on the stock is 0.14. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer with 2 decimals (e.g. 1.23)

Option 1

Low Cost Option
Download this past answer in few clicks

1.94 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE