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Assume Gillette Corp will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 5th 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 firms equity cost of capital is 8.8%?

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

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Financial Management, Finance

Category:- Financial Management
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