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Suppose you know a company's stock currently sells for $60 per share and the required return on the stock is 9 percent. You also know
Suppose you know a company's stock currently sells for $60 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a 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? Multiple Choice $2.58 $2.45 $5.17 $2.74 $2.70
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