Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 5th year. Thereafter, growth will level off at 2.1% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.7% ?

Show me how to get $16.71 please

Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 5th year. Thereafter, growth will level off at 2.1 % per year. According to the dividend-discount model what is the value of a share of Gillette stock the rm's equity cost of capital is 7.7%? The value of Gillette's stock is $16.71. (Round to the nearest cent.)