Suppose you know a company's stock currently sells for $50 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.

Required:

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

rev: 09_18_2012

$6.98

$3.75

$3.82

$3.49

$3.31