8. SWS stock is expected to pay a $1.00 per share next year. You expect the price per share to be $40 1 year from now. If you require an 12% return to invest in assets with similar risk to SWS, what value do you place on the stock today? (2 points)

9. There are various dividend valuation models that can help us price a stock. Briefly explain the difference between the constant dividend model and the constant dividend growth rate model. 2 points

10. Which of the following assets offers the best risk-return profile (e.g., which investment option do you prefer?) (2 points) a. Asset A: Expected Return = 20% Standard Deviation = 11% b. Asset B: Expected Return = 30% Standard Deviation = 15%