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Suppose you know that a companys stock currently sells for $ 46 per share and the required return on the stock is 8 %. You

Suppose you know that a companys stock currently sells for $ 46 per share and the required return on the stock is 8 %. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If the companys policy is to always maintain a constant growth rate in its dividends, what is the current dividend per share (D0)? What is the expected stock price four years from now?

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