Gentlemen gym just paid it annual dividend of 3 per share

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Gentlemen gym just paid it annual dividend of $3 per share and, and it is widely expected that the dividend will increase by 5% per year indefinitely

1- What price should the stock sell at? The discount rate is 15%

2- How would you answer change if the discount rate were only 12%. Why does the answer change.

Reference no: EM13566675

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