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What is the value of a share of gillette stock

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Reference no: EM132161397

Question - Assume Gillette Corporation will pay an annual dividend of $ 0.64 one year from now. Analysts expect this dividend to grow at 12.4 % per year thereafter until the 5th year. Thereafter, growth will level off at 2.5 % 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 7.8 %?

Reference no: EM132161397

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