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Prock Petroleum's stock has a required return of 13%, and the stock sells for $50 per share.The firm just paid a dividend of $1.00, and
Prock Petroleum's stock has a required return of 13%, and the stock sells for $50 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?
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