BC 'N D Just Paid Its Annual Dividend of

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