sebastiantroysmith
sebastiantroysmith
21.11.2019 • 
Business

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?

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