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.
-What price should the stock sell at if the discount rate is 12%.?
-What price should the stock sell at if the discount rate is 10%.?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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Options Futures And Other Derivatives
Authors: John C. Hull
8th Edition
0132164949, 9780132164948
