What price should the stock sell at if the discount rate is


Gentleman Gym just paid its annual dividend of $6 per share and its widely expected that the dividend will increase 5% per year indefinitely.

A. What price should the stock sell at if the discount rate is 15%? (Round to two decimal places).

B. What price should stock sell at if the discount rate is 12%? (Round to two decimal place).

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Financial Management: What price should the stock sell at if the discount rate is
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