Question
The 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
The 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:
| $270.00 | ||
| $71.43 | ||
| $73.57 | ||
| $250.00 |
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
