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Assume Gillette Corporation will pay an annual dividend of $0.63 one year...

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Finance

Assume Gillette Corporation will pay an annual dividend of

$0.63 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the fourth year. Thereafter, growth will level off at 2.4% per year. According to the DDM, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8%?

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

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Points: 0 of 3 Save Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the fourth year. Thereafter, growth will level off at 2.4% per year. According to the DDM, what is the value of a share of Gillette stock it the firm's equity cost of capital is 8.9%? The value of Gillette's stock is (Round to the nearest cont.)

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