Question
Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 4% per year
| Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 4% per year indefinitely. |
| a. | What price should the stock sell at? The discount rate is 16%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Stock price | $ |
| b. | What price should the stock sell at? The discount rate is 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Stock price | $ |
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Analysis For Financial Management
Authors: Robert C. Higgins
10th International Edition
007108648X, 9780071086486
