Assume Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 12.6 % per year thereafter until the 4th year. Thereafter, growth will level off at 1.8 % 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 7.3 %?
calc:-
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