Problem 8.06 – Current Dividend per Share, Total Return is Evenly Divided Between Capital Gains Yield and Dividend Yield
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given a company’s current stock price, required return, and a policy to maintain a constant growth rate in dividends, determine the current dividend per share when the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Find the current dividend per share.
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