Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. What is the current dividend if it's the company's policy to always maintain a constant growth rate in its dividends?
A) $4.18
B) $4.29
C) $4.37
D) $4.50
E) $4.64
Correct Answer:
Verified
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