Suppose you know that a company's stock currently sells for \( \$ 65.90 \) per share and the required return on the stock is 12 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? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Dividend per share

To find the current dividend per share, we need to understand that the total required return consists of both the dividend yield and the capital gains yield. Given that the required return is 12 percent and it's evenly divided, the dividend yield and the capital gains yield will each be 6 percent (12% / 2). Using the formula for dividend yield, we can express it as: \[ \text{Dividend Yield} = \frac{\text{Dividend per Share}}{\text{Stock Price}} \] From this, we can derive the current dividend per share: \[ 0.06 = \frac{\text{Dividend per Share}}{65.90} \] Solving for the dividend per share: \[ \text{Dividend per Share} = 0.06 \times 65.90 = 3.95 \] Thus, the current dividend per share is **$3.95**.