Assume Gilette Corporation will pay an annual dividend of 50 62 one year bom now Analysts expect this dividend to grow at 11.3% per year thereafter und t growth will level off at 2.1% per year According to the dividend-discount model, what is the value of a share of Gillette t 5th year Thereafter the firm's equity cost of capital is 7.3%? int
Assume Gilette Corporation will pay an annual dividend of 50 62 one year bom now Analysts expect this dividend to grow at 11.3% per year thereafter und t growth will level off at 2.1% per year According to the dividend-discount model, what is the value of a share of Gillette t 5th year Thereafter the firm's equity cost of capital is 7.3%? int
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now Analysts expect this dividend to grow at 11.3% 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 7.3%?
The value of Gilette's stock is (Round to the nearest cent)
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