Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 12 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

$10.19

$5.46

$4.84

$5.09

$5.40