Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect...
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Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.1% per year thereafter until the 6th year. Thereafter, growth will level off at 1.8% 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 7.1%? The value of Gillette's stock is $ (Round to the nearest cent.) Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.1% per year thereafter until the 6th year. Thereafter, growth will level off at 1.8% 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 7.1%? The value of Gillette's stock is $ (Round to the nearest cent.)
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GILLETTE STOCK VALUE CALCULATION The dividenddiscount model can be used to calculate the value of a ... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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