Suppose you know that a company’s stock currently sells for $64 per share

Suppose you know that a company’s stock currently sells for $64 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. It is the company’s policy to always maintain a constant growth rate in its dividends.

Suppose you know that a company’s stock currently sells for $64 per share

Question
Suppose you know that a company’s stock currently sells for $64 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. It is the company’s policy to always maintain a constant growth rate in its dividends.