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Assume Gillette Corporation will pay an annual dividend of 0.61 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 4th year.​ Thereafter, growth will level
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Assume Gillette Corporation will pay an annual dividend of 0.61 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 4th year.​ Thereafter, growth will level off at 1.7% 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 ​8.7% ?

User Jensen
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17 votes
17 votes

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I'm so sorry but I do not know the answer to these kind of a question : )

User Mrinmoy
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