Mulroney Motors' stock has a required return of 10% and its stock trades at $50 per share. The year-end dividend, D₁, is expected to be $1.00 per share. After this payment, the dividend is expected to grow by 25% per year for the next three years. That is, D₄ = $1.00(1.25)³ = $1.953125. 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? In other words, what is X?

		5.47%
		6.87%
		6.98%
		8.00%
		8.27%