Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to gro
Posted: Fri Jul 01, 2022 7:42 am
Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.1% per year thereafter until the 4th 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%?