Constant Growth Valuation
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Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (I.e. DI = $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 the company's stock?
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Solution Summary
Constant growth valuations are examined.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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