Problem:

Thress Industries just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow 6% a year for the next 3 years and then 13% a year thereafter. What is the expected dividend per share for each of the next 5 years?

D1 = $

D2 = $

D3 = $

D4 = $

D5 = $

Boehm Incorporated is expected to pay a $3.90 per share dividend at the end of this year (i.e., D1 = $3.90). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 16%. What is the value per share of Boehm's stock? Please provide step by step solution.