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# 6 . Stock Valuation: Suppose you know that a company s stock currently sells for $ 6 5 per share and the required return

# $6 .$ Stock Valuation:

Suppose you know that a companys stock currently sells for $ $65$ per share and the required return on the stock is $10 % .$ You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield $.$

If its the companys policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

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