Boehm Incorporated is expected to pay a $1.70 per share dividend at the end of this year (i.e., D1 = $1.70). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 13%. What is the value per share of the company's stock?© BrainMass Inc. brainmass.com October 2, 2020, 2:48 am ad1c9bdddf
Using Constant Growth Model,
Stock price = Expected ...
The solution finds the value per share using constant growth valuation.