According to the dividend-discount model what is the value


Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 12.9% per year thereafter until the 6th year. Thereafter, growth will level off at 1.6% 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 7.6% ?

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

Request for Solution File

Ask an Expert for Answer!!
Risk Management: According to the dividend-discount model what is the value
Reference No:- TGS02796836

Expected delivery within 24 Hours