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Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts...

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Finance

Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 12.9% per year thereafter until the

6th 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

7.5%?

The value of Gillette's stock is $_____ (Round to the nearest cent.)

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