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1 . The next dividend payment by DEF, Inc., will be $ 3 . 2 3 per share. The dividends are anticipated to maintain a

1. The next dividend payment by DEF, Inc., will be $3.23 per share. The dividends are anticipated to maintain a growth rate of 4.93 percent forever. If the stock currently sells for $37 per share, what is the required return (in percent)? Answer to at least three decimals.
2. Suppose you know that a company's stock currently sells for $51.25 per share and the required return on the stock is 9.17 percent. You also know that the total return on the stock is evenly divided between capital gains yield and 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? Answer to two decimals.

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