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Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analys

Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 12.7% per year therafter until the 6th year. Therafter, growth will level off at 2.5% per year. According to the dividend-discount model, what is the value of a share of Gillete stock if the firm's equity cost of capital is 7.3%?

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

Dec 03 2019 View more View Less

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