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Suppose you know that a company's stock currently sells for $52 per share and the required return on the stock is 12 percent. You
Suppose you know that a company's stock currently sells for $52 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. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current dividend per share The next dividend payment by Savitz, Inc., will be $1.84 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $36 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
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