Assume Gillette Corporation will pay an annual dividend of $ 0.63 one year from now. Analysts expect this dividend to grow at 12.6 % per
Assume Gillette Corporation will pay an annual dividend of $ 0.63 one year from now. Analysts expect this dividend to grow at 12.6 % per year thereafter until the 4th year. Thereafter, growth will level off at 1.6 % 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 8.5 %?
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Authors: Robert D. Edwards, John Magee
1st Edition
1607962233, 978-1607962236
