Solved: What is the value of a share of gillette stock, Finance Basics

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What is the value of a share of gillette stock

Question:

Gillette has announced that it will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter through the fifth year. After the fifth year, growth will level off at 2% per year. Applying the dividend discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8%?

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Finance Basics: What is the value of a share of gillette stock

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