Business, 05.11.2020 19:10 10040813

Gentleman Gym just paid its annual dividend of $3 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? The discount rate is 15%.
B. How would your answer change if the discount rate was only 12%? Why does the answer change?

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Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the divi...