Question
Thress Industries just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow 6% a year for the
Thress Industries just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow 6% a year for the next 3 years and then 13% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to the nearest cent.
D1 = $
D2 = $
D3 = $
D4 = $
D5 = $
Boehm Incorporated is expected to pay a $3.90 per share dividend at the end of this year (i.e., D1 = $3.90). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 16%. What is the value per share of Boehm's stock? Round your answer to the nearest cent.
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