Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. savickas petroleums stock has a required return of

Savickas Petroleums stock has a required return of 12.00%, and the stock sells for $30.00...

50.1K

Verified Solution

Question

Accounting

Savickas Petroleums stock has a required return of 12.00%, and the stock sells for $30.00 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 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 stocks expected constant growth rate after t =4, i.e., what is X?Do not round your intermediate calculations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Depreciation expense. ? Richardses' Tree? Farm, Inc. has just purchased a new aerial tree trimmer for...

Finance
Q

The Grocery Manufacturers of America reported that 65% of consumers read the ingredients listed on a...

Statistics
Q

Traditional solder is a low melting point alloy of lead and tin. (Some countries havemandated the...

Chemistry
Q

Which of the following is true of geometric isomers O they have different molecular formulas...

Biology
Q

Magnetic Effect of Current 1 fed face fay face and land find the Magnetic field...

Physics
Q

A contractor finds that Crew A takes 9 1/2 hours to construct a retaining wall...

Basic Math
Q

3 700 students were asked how they get to school The For the included pie...

Statistics
Q

2. Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity...

Accounting
Q

Mike Greenberg opened Blue Window Washing Inc. on July 1, 2022. During July, the following...

Accounting
Q

When an asset is sold, a gain is calculated as the difference between:a. cash proceeds...

Accounting
Q

On January 1, 2021, Girardi Company leased several machines from Cole Corporation under a 3-year...

Accounting
Q

1) A company has a choice of borrowing money by issuing commercial paper or opening...

Finance