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Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 11.6% per year thereafter

Assume Gillette Corporation will pay an annual dividend of

$0.66

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

2.3%

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

8.8%?

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