What is the value per share of boehms stock

Assignment Help Financial Management
Reference no: EM13808533

Constant Growth Valuation

Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 = $2.20). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the value per share of Boehm's stock? Round your answer to the nearest cent.

Reference no: EM13808533

Questions Cloud

Understanding of maslow hierarchy of needs : Your supervisors have come to you and told you that they want to have a better understanding of Maslow's Hierarchy of Needs. Their reasoning is to have a better understanding of where the workers who report to them are coming from in this hierarchy.
Explain how your interest in the subject developed : Discuss how your interest in the subject developed and describe any experience you have had in the field - such as volunteer work, internships and employment, participation in student organizations and activities.
Nonconstant growth valuation : A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, then at a constant rate of 6% thereafter.
How the ruling in the case impacts the lives of americans : hese individuals serve life-long appointments once they are nominated by the President and confirmed by the United States Senate. Below are a list of some of the most controversial decisions in the last few decades by the Supreme Court.
What is the value per share of boehms stock : Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 = $2.20). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the value per..
American society and globalized economy : A description of at least 200 words about what do think a lawyer does, and what role a lawyer plays, and what role a lawyer should play, in the 21st century American society and globalized economy.
Required return on riskier stock exceed : Stock R has a beta of 1.4, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 5%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..
What is your return on portfolio : Your stock portfolio consists of two stocks. You have $15,000 in Company A and $25,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is your return on portfolio?
Organization principal general manager : Which of the following is the organization's principal general manager?

Reviews

Write a Review

Financial Management Questions & Answers

  Why are leverage your business model deals over-priced

Why are leverage your business model (LBM) deals 'over-priced'; whereas reinvent your business model (RBM) deals 'underpriced'?

  What is the companys pretax cost of debt

Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 9 percent annually. ..

  Difference between an account receivable and note receivable

The Brown Company sells small office equipment and fixtures on credit.  Their ending balance in Accounts Receivable for 2012 was $120,000. What is the difference between an account receivable and a note receivable? Give an example of each.

  What was wallaces total long-term debt

At year-end 2013, Wallace Landscaping total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2013 were $2.1 million, are expected to increase by 20% in 2014. Total assets and accounts payable are proportional to sales,..

  Compute the payoff schedule for the call option

Compute the payoff schedule for the call option using the following stock prices, S, and draw a graph of the payoff schedule and Compute the payoff schedule for the call option using the following stock prices, S, and draw a graph of the payoff sched..

  State the coupon rate must the company set on its new bonds

What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

  Determine the investments net present value

Determine the investment's net present value, the internal rate of return, payback period and the discounted payback period and analyse the profitability of Briscoes Ltd by preparing a common-size income statement and by calculating any other ratios..

  Assume that your required rate of return-stream of cash flow

Assume that your required rate of return is 12% and you are given the following stream of cash flows

  Evaluating two different silicon wafer milling machines

You are evaluating two different silicon wafer milling machines. The Techron I costs $228,000, has a three-year life, and has pre-tax operating costs of $59,000 per year. The Techron II costs $400,000, has a five-year life, and has pre-tax operating ..

  The bonds make semi-annual payments

Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 6.4 percent. The bonds make semi-annual payments. If these bonds currently sell for 110 percent of par value, what is the YTM?

  Explain what does this indicate the firm''s expected ebitda

Assume that in five years, DigiVault will have an expected exit enterprise value of $48 million, based on an EBITDA multiple of 5.0 from similar exit transactions. What does this indicate the firm's expected EBITDA will be at that time?

  What is the price and bond equivalent yield

A Treasury bill that settles on May 18, 2012, pays $100,000 on August 21, 2012. Assuming a discount rate of 5.41 percent, what is the price and bond equivalent yield? Use Excel to answer this question.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd