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Finance problem: Share valuation

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Bohen Inc is expexted to pay $1.50 per share dividend of the year (i.e, D1=$1.50). The dividend is expected to grow at constant rate of 7%. The required rate of return on the stock r is 15%. What is the value per share of company's stock.

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Solution Summary

The problem deals with determining the value of a share given certain assumptions.

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QUESTION

Bohen inc is expected to pay $1.50 per share dividend of the year (i.e,D1=$1.50).The dividend is ...

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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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