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%?
calc:-
Get Answers For Free
Most questions answered within 1 hours.