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Suppose you know a company's stock currently sells for $46 per share and the required return on the stock is 0.16 . You also know
Suppose you know a company's stock currently sells for $46 per share and the required return on the stock is 0.16 . 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)
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