Constant Dividend Growth Valuation Boehm Incorporated is expected to pay a $2.50 per share dividend at the
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Constant Dividend Growth Valuation
Boehm Incorporated is expected to pay a $2.50 per share dividend at the end of this year (i.e., D1= $2.50). The dividend is expected to grow at a constant rate of 4% 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.
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