Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year
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Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 5 $1.50). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 13%. What is the estimated value per share of Boehm’s stock?
DividendA 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...
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Ayman Salloum
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Related Book For 
Corporate Finance A Focused Approach
ISBN: 978-1337909747
7th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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