Question content area top

Part $1$

Assume Gillette Corporation will pay an annual dividend of $ $0\mathrm{.}66$ one year from now. Analysts expect this dividend to grow at $11\mathrm{.}7\%$ per year thereafter until the $6$th year.$$ Thereafter, growth will level off at $1\mathrm{.}8\%$ per year. According to the$$ dividend$-$discount model, what is the value of a share of Gillette stock if the$$ firm's equity cost of capital is $7\mathrm{.}8\%?$

Question content area bottom

Part $1$

The value of$$ Gillette's stock is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$