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Assume Gillatte Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.4% per year thereatfer
Assume Gillatte Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.4% per year thereatfer untia the 6th year, Thereatter, growth will level of at 1.8% per year. According to the dividend-discount model, what is the value of a share of Gilletie stock if the firm's oquity cost of capital is 8.3% ? The value of Gillette's Atock is (Round to the nearoat cent)
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