Question

Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect...

Assume Gillette Corporation will pay an annual dividend of

$0.63

one year from now. Analysts expect this dividend to grow at

12.7%

per year thereafter until the

5th

year.​ Thereafter, growth will level off at

2.1%

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

8.8%​?

Homework Answers

Answer #1

calc:-

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 4th year.​ Thereafter, growth will level off at 1.7% 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 8.7%​? ​
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 11.9% per year thereafter until the 66th year.​ Thereafter, growth will level off at 2.2% per year. According to the​ dividend-discount model, what is the value of a share of Gillette stock if the​ firm's equity cost of capital is 8.9%​? The value of​ Gillette's stock is ​$ ​(Round to the nearest​ cent.)
Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.7% per year thereafter until the 66th 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 7.1%​?
Gillette Corporation will pay an annual dividend of $ 0.68 one year from now. Analysts expect...
Gillette Corporation will pay an annual dividend of $ 0.68 one year from now. Analysts expect this dividend to grow at 12.7 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.7 % per year. According to the dividend discount model, what is the value of a Gillette share if the firm's equity cost of capital is 7.9 %?
Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 11.7 % per year thereafter until the 5th 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 8.2 %​?
Assume Gillette Corporation will pay an annual dividend of $ 0.69 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $ 0.69 one year from now. Analysts expect this dividend to grow at 12.8 % per year thereafter until the 6th year.​ Thereafter, growth will level off at 2.1 % 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 %​?
Assume Gillette Corporation will pay an annual dividend of $ 0.67 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $ 0.67 one year from now. Analysts expect this dividend to grow at 12.4 % per year thereafter until the 4 th year.​ Thereafter, growth will level off at 2.1 % 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 %?
Assume Gillette Corporation will pay an annual dividend of $ 0.67 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $ 0.67 one year from now. Analysts expect this dividend to grow at 11.2 % per year thereafter until the 5th year.​ Thereafter, growth will level off at 2.2 % 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 %​? The value of Gillete's stock is___
Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this dividend to grow a 12.2% per year thereafter until the 4th year.​ Thereafter, growth will level off at 1.8% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the​ firm's equity cost of capital is 7.3%​? The value of​ Gillette's stock is ​$______.
Assume Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts...
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 %​?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT