According to the? dividend-discount model

Assignment Help Financial Management

Reference no: EM131881904

Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.8% 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 7.7%??

Reference no: EM131881904

Questions Cloud

Exchange rate to make the interest rate parity work : what must be the forward exchange rate to make the interest rate parity work?

What is paul gain and loss reported on his tax return : Paul bought stock for $2,000 and sold the same stock for $2,300. What is Paul’s gain/loss reported on his tax return?

Interpret the performance and provide necessary numbers : The stock beta is 1.3, return on the market is 10%, treasury rate is 4.%. The actual return is 1 1V%. Interpret the performance and provide necessary numbers..

Find the operating cash flow for year : Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales revenue of $313,500,000?,

According to the? dividend-discount model : 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 7.7%??

The? dividend-discount model predict highline stock : what price does the? dividend-discount model predict Highline stock should? sell?

How many years after brenda retires will bruce retire : Today, Bruce and Brenda each have $150,000 in an investment account. How many years after Brenda retires will Bruce retire?

Yield to maturity to the terms of the bond : Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year.

What is the market value of the stock after rights offering : If you exercise your preemptive rights, how many of the new shares can you purchase? What is the market value of the stock after the rights offering?

User Account

All Pages