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The required return for Williamson Heating's stock is 1 2 % , and the stock sells for $ 2 5 per share. The firm just

The required return for Williamson Heating's stock is 12%, and the stock sells for $25 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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