Constant-growth model gentleman gym just paid its annual, Ask an Expert

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Constant-Growth Model. 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 were only 12%? Why does the answer change?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91559284

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