A particular stock sells for $43.20 share and provides a total return of 11.6 percent. The total return is evenly divided between the capital gains yield and the dividend yield. Assuming a constant dividend growth rate, what is the current dividend per share?A. $2.24B. $2.37C. $2.34D. $2.51E. $2.47
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Ответ:
B. $2.37
Explanation:
The current dividend per share will be calculated using formula:
Po = [Do (1 + g) ] / (r - g)
Do = Po (r - g) / (1 + g)
Po = Current Share price
Do = Current dividend
r = Rate of return
g = growth of dividend
Do = ($43.20 * (0.116 - 0.058) / 1.058
Do = $2.37 per share
Ответ: