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Assume Gillette Corporation will pay an annual dividend of $0.68 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

$0.68

one year from now. Analysts expect this dividend to grow at

12.7%

per year thereafter until the

sixth

year. Thereafter, growth will level off at

2.1%

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

7.4%?

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