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home / study / business / finance / finance questions and answers / assume gillette corporation will pay an annual dividend of $0.63 one year
home / study / business / finance / finance questions and answers / assume gillette corporation will pay an annual dividend of $0.63 one year from now. analysts ...
Question: Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expe...
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 12.5% per year thereafter until the 4th year. Thereafter, growth will level off at 2.4% 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 8.8%?
The value of Gillette's stock is _________(Round to the nearest cent.)
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