Suppose you know a company's stock currently sells for $100 per share and the required return on the stock is 9 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 (D0) if it's the company's policy to always maintain a constant growth rate in its dividends?
$4.05
$4.55
$4.71
$4.31
$3.18