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Please provide CORRECT answer. If it's wrong like the other 2 times I WILL LEAVE A THUMBS DOWN!! Assume Gillette Corporation will pay an annual
Please provide CORRECT answer. If it's wrong like the other 2 times I WILL LEAVE A THUMBS DOWN!!
Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the fourth year. Thereafter, growth will level off at 1.6% per year. According to the DDM, what is the value of share of Gillette stock if the firm's equity cost of capital is 7.5%? The value of Gillette's stock is $15.28. (Round to the nearest cent.) Step by Step Solution
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