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he BMC Company has just paid a dividend of $5.00. Over the last 5 years, their dividends grew at a rate of 8%. However due
he BMC Company has just paid a dividend of $5.00. Over the last 5 years, their dividends grew at a rate of 8%. However due to current market conditions, BMCs dividends are now expected to grow at only 3% forever. The required rate of return on BMC stock is 10%. The current market price of BMC stock is closest to:
$73.57 | ||
$250.00 | ||
$270.00 | ||
$71.43 |
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