What price should the stock sell

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Reference no: EM133164127

Question - 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.

Required -

a. What price should the stock sell at if the discount rate is 15%.

b. What price should the stock sell at if the discount rate is 12%.

Reference no: EM133164127

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