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Assume Gill Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.6% per year thereafter
Assume Gill Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.6% per year thereafter until the 6th year. Thereafter, growth will level off at 2.4% per year. According to the dividend-discount model, what is the value of a share of Gill stock if the firm's equity cost of capital is 8.1%?
The value of Gillette's stock is _____?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
