Suppose you know a company's stock currently sells for $90 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.

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?

a.) $7.75

b.) $3.88

c.) $4.10

d.) $4.05

e.) $3.68