Asume gillette corporation will pay an annual dividend of , Ask an Expert

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Assume Gillette Corporation will pay an annual dividend of $ 0.69 one year from now. Analysts expect this dividend to grow at 12.7 % per year thereafter until the 4th year. Thereafter, growth will level off at 1.5 % 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 7.9 %?

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Category:- Financial Management
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