Always maintain a constant growth rate in its dividends

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Reference no: EM13813398

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

Reference no: EM13813398

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