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NIKE Corporation will pay an annual dividend of $ 0 . 6 5 one year from now. It expects this dividend to grow at 1

NIKE Corporation will pay an annual dividend of $0.65 one year from now. It expects this
dividend to grow at 12% per year thereafter until the fifth year. Thereafter, growth will
level off at 2% per year. What is the value of a share of Gillette stock if the firm's equity
cost of capital is 8%?

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