Gentleman Gym just paid its annual dividend of $5 per share, and it is widely expected that the dividend will increase by 5% per year Indefinitely. a. What price should the stock sell at if the discount rate is 15%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Stock price 35.06 b. What price should the stock sell at if the discount rate is 12%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete and correct. Stock price $ 75.00
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Gentleman Gym just paid its annual dividend of $2 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely. a. What price should the stock sell at if the discount rate is 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price $ b. What price should the stock sell at if the discount rate is 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price $
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