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    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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    https://brainmass.com/business/accounting/constant-growth-valuation-305801

    Solution Summary

    Constant growth valuations are examined.

    $2.19

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