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Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts...

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Accounting

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Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 11.8% per year thereafter until the 5 th year. Thereafter, growth will level off at 2.1% 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 8.2% ? The value of Gillette's stock is \$ (Round to the nearest cent)

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