Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 9, Problem 18QAP
Summary Introduction

To calculate: The most recent dividend per share paid on the stock.

Introduction: The total of a company's declared dividends issued for each outstanding share of its common stock is known as the dividend per share (DPS).

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Suppose you know that a company's stock currently sells for $45.85 per share and the required return on the stock is 6.48 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer to two decimals.
Suppose you know that a company's stock currently sells for $53.47 per share and the required return on the stock is 8.5 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintaina constant growth rate in its dividends, what is the current dividend per share? Answer to two decimals.
Ugreen Corporation stock currently sells on RM74.32 per share. The market requires a return of 10.5 percent on the firm’s stock. If the company maintains a constant 4 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

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Corporate Finance

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