Dividend-discount model-value of share of gillette stock

Reference no: EM132002372

Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 12.9% per year thereafter until the 6th 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 7.6% ?

The value of Gillette's stock is $________ (Round to the nearest cent.)

Reference no: EM132002372

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