Savickas Petroleum's stock has a required return of 12%,and the stock sells for $40 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? A)5.17% B)5.44% C)5.72% D)6.02% E)6.34%

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The Answer of Savickas Petroleum's stock has a required return of 12%,and the stock sells for $40 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? A)5.17% B)5.44% C)5.72% D)6.02% E)6.34%

Savickas Petroleum's Stock Has a Required Return of 12%,and the Stock