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Assume Gillette Corporation will pay an annual dividend of $ 0.63 one year from now. Analysts expect this dividend to grow at 12.1 % per

Assume Gillette Corporation will pay an annual dividend of $ 0.63 one year from now. Analysts expect this dividend to grow at 12.1 % per year thereafter until the

4th year.Thereafter, growth will level off at 2.4 % per year. According to thedividend-discount model, what is the value of a share of Gillette stock if thefirm's equity cost of capital is 8.6%?

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