What price should the stock sell at if discount rate

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Gentleman Gym just paid its annual dividend of $4 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 20%. (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 15%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price $

Reference no: EM131931180

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