Boehm Incorporated is expected to pay a $1 50 per share dividend at the end of this year (i e , D1 $1 50) The dividend is expected to grow at a constant rate of 7 a year The required rate of return on the stock, rs, is 15 What is the value per share of Boehms stock ...

Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year

Question:

Boehm Incorporated is expected to pay a $1.50 per share at the end of this year (i.e., D1 = $1.50). The is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of Boehm’s stock?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...