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question 8: Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 11.5% per
question 8:
Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 4th year. Thereafter, growth will level off at 1.8% 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 7.7%?
The value of Gillette's stock is $______
(Round to the nearest cent.)
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