Assume Gillette Corporation will pay an annual dividend of $0.61 one.pdf
Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the 4th year. Thereafter, growth will level off at 2.3% 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 8.9%? The value of Gillette's stock is $____ (Round to the nearest cent.).
Assume Gillette Corporation will pay an annual dividend of $0.61 one.pdf
Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the 4th year. Thereafter, growth will level off at 2.3% 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 8.9%? The value of Gillette's stock is $____ (Round to the nearest cent.).
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Assume Gillette Corporation will pay an annual dividend of $0.61 one.pdf
- 1. Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the 4th year. Thereafter, growth will level off at 2.3% 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 8.9%? The value of Gillette's stock is $____ (Round to the nearest cent.)