Prock Petroleum's stock has a required return of 15%, and the stock sells for $60 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 D 4 = $1.00(1.30) 4 = $2.8561. After Year 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 Year 4, i. e., what is X? Pick the closest answer.

g = 0,116559243

Explanation:

First we solve for the present value of the know dividends:

We add them and get: 5.48

as the stock sells for 60 dollar the 54.52 represent the horizon value discounted:

Horizon value = 95.36281912

Now, we solve for grow:

g = 0,116559243

answer; ///the name of the central bank of the united states is called; ///the federal reserve known as the federal

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.