BC 'N D Just Paid Its Annual Dividend of

question 38

Multiple Choice

BC 'n D just paid its annual dividend of $.60 a share. The projected dividends for the next five years are $.30,$.50,$.75,$1.00,and $1.20,respectively. After that time,the dividends will be held constant at $1.40. What is this stock worth today at a 6% discount rate?

• A) $20.48
• B) $20.60
• C) $21.02
• D) $21.28
• E) $21.43

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