Suppose You Know a Company's Stock Currently Sells for $85

Multiple Choice

Suppose you know a company's stock currently sells for $85 per share and the required return on the stock is 10 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?

A) $3.18
B) $4.05
C) $4.37
D) $4.50
E) $4.64