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#### Boehm Incorporated is expected to pay a \$2

###### Finance

Boehm Incorporated is expected to pay a \$2.00 per share dividend at the end of this year (i.e., D1 = \$2.00). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 17%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent.

3. Woidtke Manufacturing's stock currently sells for \$27 a share. The stock just paid a dividend of \$3.25 a share (i.e., D0 = \$3.25), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent.
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What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places.

4. Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of \$5 at the end of each year. The preferred sells for \$55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.

## 2.89 USD

### Option 2

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