• If possible please provide proper explanation as to how the answer was found in a step by step process.

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.