Question
Constant Growth Valuation Boehm Incorporated is expected to pay a $2.10 per share dividend at the end of this year (i.e., D 1 = $2.10).
Constant Growth Valuation
Boehm Incorporated is expected to pay a $2.10 per share dividend at the end of this year (i.e., D1 = $2.10). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 14%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent.
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Auditing
Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard
6th Edition
0873932609, 9780873932608
