Suppose you know a company's stock currently sells for $70 per share and the required return on the stock is 6 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 if it's the company's policy to always maintain a constant growth rate in its dividends?

$2.04

Explanation:

current stock price $70

required rate of return 6%

expected return = dividend yield + capital gains yield

6% = 3% + 3%

expected return = {[dividend x (1 + growth rate)] / price} + growth rate

6% = {[dividend x (1 + 3%)] / $70} + 3%

6% - 3% = [dividend x (1 + 3%)] / $70

3% x $70 = dividend x (1 + 3%)

$2.10 = dividend x 1.03

dividend = $2.10 / 1.03 = $2.04

Future dividend= $2.0388~ $2.04

Explanation:

The return on the shares is given as 0.06 of $70. And the returns are equally shared between capital gains and dividend.

Dividend= 0.06 ÷ 2= 0.03

Dividend= 0.03 * 70= $2.10

Using the formula that related the present year dividend with next year dividend

Present dividend= Future dividend (1+ rate)

2.1 = Future dividend (1+0.03)

Future dividend= 2.1 ÷ 1.03

Future dividend= $2.0388

enlightenment impacted society by introducing the idea that mankind could use reason to discover the laws of the world and the rights of mankind. these ideals affected all factions of society, from politics to religion.

no u can still get a job there u just have to be determined.