Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect...

Assume Gillette Corporation will pay an annual dividend of

$0.61

one year from now. Analysts expect this dividend to grow at

12.8%

per year thereafter until the

6th

year. Thereafter, growth will level off at

1.7%

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

8.1%?

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jeff jeffy answered 1 year ago

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