1. BBM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to grow at the rate of 2% per year. The risk-free rate is 4% and the market risk premium is 5%. BBM has a beta...

1. BBM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to grow at the rate of 2% per year. The risk-free rate is 4% and the market risk premium is 5%. BBM has a beta of 1.2. The value of the stock is:


$20.00


$25.00


$30.00


$40.00