Today is January 1, 2022. The following information applies to Swenson Corporation: • The company paid a common dividend

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Today Is January 1 2022 The Following Information Applies To Swenson Corporation The Company Paid A Common Dividend 1 (82.34 KiB) Viewed 62 times

Today is January 1, 2022. The following information applies to Swenson Corporation: • The company paid a common dividend of $3.75 a share at the end of 2021. (That is, Do = $3.75 and it has already been paid.) • The common dividend is expected to grow at a rate of 20% for 1 year, after which time it is expected to grow at a constant rate of 4% a year, forever. •The risk-free rate is 2.5%, the market risk premium, RPM (CM - TRF), is 5.5%, and the firm's beta is 1.10. w Using the dividend growth model (allowing for non-constant growth), what should be the price of the company's stock today? BC 1. 52.6316 2. 82.4176 3. 98.9011 4. 102.8571 5. 107.3571