Gentleman Gym pays an annual dividend of $6 per share, and the dividend is expected to increase
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Question:
Gentleman Gym pays an annual dividend of $6 per share, and the dividend is expected to increase by 5% each year indefinitely. |
A. | At what price should the stock be sold? The discount rate is 15%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
stock price | $ |
B. | At what price should the stock be sold? The discount rate is 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
stock price | $ |
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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