Boehm Inc. is expected to pay a S1.50 per share dividend at the end of this year (i.e., D1 = S1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of retum on the stock, r, is 15%. What is the value per share of Boehm's stock?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Boehm Inc. is expected to pay a S1.50 per share dividend at the end of this year (i.e., DI =
S1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate
of retum on the stock, r, is 15%. What is the value per share of Boehm's stock?
Transcribed Image Text:Boehm Inc. is expected to pay a S1.50 per share dividend at the end of this year (i.e., DI = S1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of retum on the stock, r, is 15%. What is the value per share of Boehm's stock?
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