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Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 11.6 % per
Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 11.6 % per year thereafter until the 4 th year.? Thereafter, growth will level off at 2.4 % 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 7.2 % ?? The value of? Gillette's stock is ?$nothing . ?(Round to the nearest? cent.)
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