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

Assume Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 11.2 % per year thereafter until the 44th year.​ Thereafter, growth will level off at 1.9 % 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 8.3%​?

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jeff jeffy answered 1 year ago
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