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Assume Gillette Corporation will pay an annual dividend of 50 61 one year from now Analysts expect this dividend to grow at 12.7% per year
Assume Gillette Corporation will pay an annual dividend of 50 61 one year from now Analysts expect this dividend to grow at 12.7% per year thereafter until the 4th year. Thereafter, growth will lovel off at 2.5% 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 8.9% The value of Gillette's stock is $ (Round to the nearest cent)
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