Question: Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter

Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the fourth year.Thereafter, growth will level off at 2.2% per year. According to theDDM, what is the value of a share of Gillette stock if thefirm's equity cost of capital is 7.1%?

The value ofGillette's stock is $ (Round to the nearestcent.)

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