1. 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 (D0) was $2.00, what is the most likely stock price one year from now?
$48.40
$44.00
$38.60
$35.00
$29.80
2. Calculate an asset’s standard deviation based on the following observed sample of returns: -5%, 3%, 8%, 10%, 15%.
7.15%
7.60%
8.38%
8.47%
9.22%