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Assume Gillete Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.6% per year thereafter
Assume Gillete Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.6% per year thereafter until the 4th year. Thereafter, growth will level off at 1.8% per year. According to the dividend-discount model, what is the value of a share of Gillette Stock if the firms equity cost of capital is 7.3%?
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