According to the dividend-discount model

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Reference no: EM132002038

Assume Gillette Corporation will pay an annual dividend of $ 0.64 one year from now. Analysts expect this dividend to grow at 11.6 % per year thereafter until the 5th year.? Thereafter, growth will level off at 1.9 % 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 8.3 % ?

Reference no: EM132002038

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