Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts...
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Accounting
Assume Gillette Corporation will pay an annual dividend of
$0.66
one year from now. Analysts expect this dividend to grow at
12.4%
per year thereafter until the
6th
year. Thereafter, growth will level off at
2.1%
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
8.4%?
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