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Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 12.7% per year thereafter
Assume Gillette Corporation will pay an annual dividend of
$0.62
one year from now. Analysts expect this dividend to grow at
12.7%
per year thereafter until the
fourth
year. Thereafter, growth will level off at
1.7%
per year. According to the DDM, what is the value of a share of Gillette stock if the firm's equity cost of capital is
8.2%?
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