Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Savickas Petroleum's stock has a required return of 9.00%, and the stock sells for $29.00 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 20.00% per year for the next 4 years, so D4 = $1.00(1.20)4 = $2.0736. 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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