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Assume Gillette Corporation will pay an annual dividend of $.69 one year from now. Analysts expect this dividend to grow at 12.9% per year thereafter
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Assume Gillette Corporation will pay an annual dividend of $.69 one year from now. Analysts expect this dividend to grow at 12.9% per year thereafter until the 5th year. Thereafter, growth will level off at 1.9% 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 7.8%
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