Suppose you know that a companyrsquos stock currently sells


Suppose you know that a company’s stock currently sells for $56 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. 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 final answer to 2 decimal places. (e.g., 3

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Financial Management: Suppose you know that a companyrsquos stock currently sells
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