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Question $15,$ P $7-18($similar to$)$

Points: $0$ of $1$

Assume Gillette Corporation will pay an annual dividend of $$0\mathrm{.}68$ one year from now. Analysts expect this dividend to grow at $12\mathrm{.}5\%$ per year thereafter until the $5$ th year. Thereafter, growth will level off at $2\mathrm{.}1\%$ 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 $8\mathrm{.}6\%?$

The value of Gillette's stock is $9.($Round to the nearest cent.$)$