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Savickas Petroleums stock has a required return of 12.00%, and the stock sells for $44.00 per share. The firm just paid a dividend of $1.00,
Savickas Petroleums stock has a required return of 12.00%, and the stock sells for $44.00 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 30.00% per year for the next 4 years, so D 4 = $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 stocks expected constant growth rate after t = 4, i.e., what is X? Do not round your intermediate calculations. a. 6.91% b. 7.05% c. 5.60% d. 8.01% e. 5.73%
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