Question

check into a hotel Paraphrasing Tool ... Hotel Review - Ame... University of South... in Marketing - Chapte... Customer Service V... HFT 360s_ prmy car Question 8 5 pts Swanson Company's long-run constant dividend growth is expected to be 10%. If the required return (rs) for Swanson is 15%, and the most recent dividend paid (Do) was $3.00, what is the most likely stock price one year from now? $88.50 $95.20 $110.75 $55.30 $72.60 D Question 9 According to the following information, which of the stocks would be considered riskiest in a diversified portfolio of investments? 5 pts Stock

Answer 1

Answer: $72.6

P1=D0*(1+Constant growth rate)^2/(required return-Constant growth rate)
Here, P1 is the stock price one year from now and D0 is the recent dividend paid
=(3*(1+10%)^2)/(15%-10%)
=(3.63)/(5%)
=$72.6