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Please work out Problem! Savickas Petroleum's stock has a required return of 14.00%, and the stock sells for $38.00 per share. The firm just paid
Please work out Problem!
Savickas Petroleum's stock has a required return of 14.00%, and the stock sells for $38.00 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 40.00% per year for the next 4 years, so D4 = $1.00(1.40)4 = $3.8416. 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? Do not round your intermediate calculations.
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