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    Boehm Incorporated Constant Growth Valuation

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    Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D=$1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, r, is 15%. What is the value per share of Boehm's stock?

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    Solution Summary

    Boehm incorporated constant growth valuations are examined.