Savickas Petroleum's Stock Has a Required Return of 12

Multiple Choice

Savickas Petroleum's stock has a required return of 12.00%,and the stock sells for $36.00 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 stock's expected constant growth rate after t = 4,i.e. ,what is X? Do not round your intermediate calculations.

A) 5.63%
B) 4.39%
C) 6.20%
D) 4.96%
E) 5.69%