JL Co. stock currently sells for $74 per share and the required return is 12.2 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it's the company's policy to always maintain a constant growth rate in its dividends? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

JL Co. stock currently sells for $74 per share and the required return is 12.2 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it's the company's policy to always maintain a constant growth rate in its dividends? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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