Value per share of the company stock-boehm


Question:

Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (i.e., D(1) = $1.50). The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock, r(s), is 15%. What is the value per share of the company's stock?

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Finance Basics: Value per share of the company stock-boehm
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