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Problem 7-16 Constant-Growth Model (LO2) Gentleman Gym just paid its annual dividend of $6 per share, and it is widely expected that the dividend will

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Problem 7-16 Constant-Growth Model (LO2) Gentleman Gym just paid its annual dividend of $6 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 15%. (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 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price

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