What is the value of a share of gillette stock

Assignment Help Finance Basics
Reference no: EM131936792

Question: Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 44th 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 7.9%?

Reference no: EM131936792

Questions Cloud

What is effect of faster clock speeds on power consumption : What is the effect of faster clock speeds on power consumption? Why is this an important issue in the design of processors and computer systems?
What should be the price in dollars of the bond : Assume that Ford has a 30 year, 6.5% coupon bond, par value of $1,000. Given Ford's recent troubles, your broker indicates that the yield-to-maturity.
State and explain in brief moores law : State and explain in brief Moore's law. justify this empirical law in brief, arguing on the basis of development of newer VLSI fabrication technology.
What should be the price of the stock to the public : The investment banking firm of Einstein & Co. will use a dividend valuation model to appraise the shares of the Modem Physics Corporation.
What is the value of a share of gillette stock : Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter.
Find the cost of levered equity for abc : Using the unlevered cost of capital for ABC above, find the cost of levered equity for ABC (assuming that ABC's capital structure D/E will remain fixed).
Explain in brief the meaning of line with visi technology : Problem Explain in brief the meaning and significance of line with VISI technology. What are the various line widths currency being used?
What is the market risk premium : What is the expected return for a stock with a beta equal to 1.10? (Enter your answers in decimals. Do not enter percent values.)
What is the expected return of your portfolio : You have invested 30 percent of your portfolio in Jacob Inc, and 40 percent in Bella co and 30 percent in Edward Resources.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd