Suppose you know that a company’s stock currently sells for $65.30 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 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?
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| You’ve collected the following information from your favorite financial website. |
| 52-Week Price
|
Stock (Div) | Div Yld % |
PE Ratio |
Close Price |
Net Chg |
|
| Hi | Lo | |||||
| 77.40 | 10.43 | Palm Coal 0.36 | 2.6 | 6 | 13.90 | –0.24 |
| 56.41 | 34.02 | Lake Lead Grp 2.14 | 5.2 | 10 | 41.03 | –0.01 |
| 130.93 | 69.50 | SIR 2.00 | 2.2 | 10 | 88.97 | 3.07 |
| 50.24 | 13.95 | DR Dime 0.80 | 5.2 | 6 | 15.43 | –0.26 |
| 35.00 | 20.74 | Candy Galore 0.32 | 1.5 | 28 | ?? | 0.18 |
|
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| Find the quote for the Lake Lead Group. Assume that the dividend is constant. |
| Requirement 1: |
|
What was the highest dividend yield over the past year? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Highest dividend yield | [removed] % |
| Requirement 2: |
|
What was the lowest dividend yield over the past year? |
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