BMI Corp. just paid an annual dividend of $10. The company follows a dividend policy that raises dividends annually at a rate of 2% (and expects this rate to go forever). The required rate of return is 10%.

What is today's stock price?

Question 12 options:

1)

65.00

2)

125.00

3)

51.00

4)

127.50

5)

100.00