Search business / accounting / accounting questions and answers / Boehm Corporation Has Had Stable Earnings Growth Of 7%.... Question: Boehm Corporation Has Had Stable Earnings Growth Of 7... Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $2 million on net income of S5 million. However, net income is expected to grow by 30% in 2020, and Boehm plans to invest $3.5 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 33%. Boehm has 1 million shares of stock. Calculate Boehm's dividend per share for 2020 under each of the following policies: Its 2020 dividend payment is set to force dividends per share to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. S It continues the 2019 divic This problem has been solved! It uses a pure residual poli the $3.5 million Investment is financed wit See the answer $ It employs a regular-divide ased on the long-run growth rate and the extra dividend being set according to the residual policy. What will the extra dividend be? Round your answer to the nearest cent S t. S Search business / accounting / accounting questions and answers / Boehm Corporation Has Had Stable Earnings Growth Of 7%.... Question: Boehm Corporation Has Had Stable Earnings Growth Of 7... Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $2 million on net income of S5 million. However, net income is expected to grow by 30% in 2020, and Boehm plans to invest $3.5 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 33%. Boehm has 1 million shares of stock. Calculate Boehm's dividend per share for 2020 under each of the following policies: Its 2020 dividend payment is set to force dividends per share to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. S It continues the 2019 divic This problem has been solved! It uses a pure residual poli the $3.5 million Investment is financed wit See the answer $ It employs a regular-divide ased on the long-run growth rate and the extra dividend being set according to the residual policy. What will the extra dividend be? Round your answer to the nearest cent S t. S