Question
Swinnerton Co.s stock price is $40 per share, and its expected year-end dividend is $3.60 a share (D 1 = $3.60). The stocks required return
Swinnerton Co.s stock price is $40 per share, and its expected year-end dividend is $3.60 a share (D1 = $3.60). The stocks required return is 15.00%, and the dividend is expected to grow at a constant rate forever. What is the expected price of the stock 4 years from now?
a. $42.00
b. $46.79
c. $48.62
d. $50.50
e. $52.43
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
