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Assume Gillette Corporation will pay an annual dividend of $1.82 one year from now. Analysts expect this dividend to grow at 12% per year thereafter
Assume Gillette Corporation will pay an annual dividend of $1.82 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the 3rd year. Thereafter, growth will level off at 4% per year. Based on these assumptions, what dividends will Gilette pay in the next four years? Note that you do not need to find the current stock price all you have to calculate are the dividends D1, D2, D3, and D4, to the nearest cent.
D1 =
D2 =
D3 =
D4 =
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