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13 points ssume Gillette Corporation will pay an annual dividend of $0.65 one year from now (l.e., dividend 1). Analysts expect this dividend to grow

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13 points ssume Gillette Corporation will pay an annual dividend of $0.65 one year from now (l.e., dividend 1). Analysts expect this dividend to grow at 12% per year thereafter until me third year. After then (.e, starting in year 4), growth will level off at 2% per year forever. According to the dividend-discount model: What is the value of a share of Gillette Stocktoday (ie. Po if the firm's equity cost of capital (ie, required return) is 8%? Suppose instead that you plan to hold the stock for four years. What is the value of a share of Gillette Stock today.ie, Pol if you plan to sell the stock in four years (ie. you will sell the stock in year 4 immediately after it makes its fourth dividend payment)? For what price would you expect to be able to sell a share of Gillette stock in four years. just after dividend 4 is paid (i.e., Pal? 1 Drag n' Drophere or Browse

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