Question
Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter
Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the fifth 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 7.9% ? The value of Gillette's stock is $___
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
