Suppose you know that a company's stock currently sells for $78 per share and the required return on the stock is 10.9 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? Input area: Stock price Required return (Use cells A6 to B7 from the given information to complete this question.) Output area: $78.00 10.90% Dividend yield Next year's dividend Current dividend 11

Suppose you know that a company's stock currently sells for $78 per share and the required return on the stock is 10.9 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? Input area: (Use cells A6 to B7 from the given information to complete this question.)