Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume gillette corporation will pay an annual div

Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts...

60.1K

Verified Solution

Question

Accounting

Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this dividend to grow a 12.2% per year thereafter until the 4th 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 7.3%?

The value of Gillette's stock is $______.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Summarize main factors that have influence on SN2 type reactions: reactivity of the nucleophile, nature of...

Chemistry
Q

Question 9 One of the key early tests of Einstein's General Theory of Relativity was the bending of...

Physics
Q

List the starting methods used in starting 3-phase induction motors and explain any two of these...

Electrical Engineering
Q

Please refer 2 items as below from Microsoft’s Letter to Shareholders as below. And refer them...

Accounting
Q

t t 1 y 1 t 1 y 0 t 1 Solution of this ODE...

Calculus
Q

1 Dan has to pay 2 each time he takes the city bus Write an...

Algebra
Q

Exercise 17-6 Plantwide overhead rate LO P1 Textra Plastics produces parts for a variety of...

Accounting
Q

Corporation accounting has by far the most complex requirements of the forms of business organization....

Accounting
Q

Double West Suppliers (DWS) reported sales for the year of $390,000, all on credit. The...

Accounting
Q

On July 1. 2025, Novak Co, pays $10,200 to Splish Insurance C0, for a 2-year...

Accounting
Q

Pavel and his spouse Imani just graduated from graduate school and found jobs. Pavel is...

Accounting
Q

Ty# 14 # 15 You run a school in Florida. Fixed monthly cost is $5,348.00...

Accounting