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Constant dividend growth valuation

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Constant Dividend Growth Valuation

Boehm Incorporated is expected to pay a $3.10 per share dividend at the end of this year (i.e., D1 = $3.10). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 14%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132956731

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