Assume gillette corporation will pay an annual dividend of


Question: Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 44th 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 7.9%?

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Finance Basics: Assume gillette corporation will pay an annual dividend of
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