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Question: If Swenson Co.

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Question::::: If Swenson Co.'s stock price is $50 per share, and its expected year-end dividend is $2.00 a share (D1 = $2.00). The stock's required return is 9%, and the dividend is expected to grow at a constant rate forever. What is the expected price of the stock 3 years from now?

a. $53.75

b. $54.66

c. $55.00

d. $56.25

e. $57.88

  • Please show formula.

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Growth rate Growth rate refers to the increasing rate of the dividend... View the full answer

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