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correct answer is 8.70% Show full work . don't use excel The required return for Williamson Heating's stock is 12%, and the stock sells for
correct answer is 8.70%
Show full work . don't use excel
The required return for Williamson Heating's stock is 12%, and the stock sells for $40 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1.00(1.30)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t 4, i.e., what is X? Select the correct answer. a. 8.70% b. 7.46% c. 7.08% d. 8.26% e. 7.85%Step by Step Solution
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