PERSONAL FINANCE (LL)
PERSONAL FINANCE (LL)
13th Edition
ISBN: 9781337885942
Author: GARMAN
Publisher: CENGAGE L
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Chapter 5, Problem 2BYOPFM

Keep Your Accounts Current. Go online every few days to monitor checking account activity. Use the “Did You Know?” box on page 159 or Worksheet 24: Reconciling My Checking Account from “My Personal Financial Planner” to help reconcile your account monthly.

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I have attatched two related pictures to calculate a value of a compay using a DCF model. Please show how to get residual value like in the picture shown.
A company currently pays a dividend of $3.6 per share (D0 = $3.6). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.
Boehm Incorporated is expected to pay a $3.20 per share dividend at the end of this year (i.e., D1 = $3.20). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 15%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent.
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What Is A Checking Account?; Author: The Smart Investor;https://www.youtube.com/watch?v=vGymt1Rauak;License: Standard Youtube License