Question
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
| 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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Enron And World Finance A Case Study In Ethics
Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin
1st Edition
1403947635, 978-1403947635
