Maurice Tutor

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Category > Management Posted 01 Apr 2018 My Price 5.00

Gillette Corporation

Assume Gillette Corporation will pay an annual dividend of $ 0.65 one year from now.EE Question Help B 7-17 (book static) Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12.0% per year thereafter until the 5th year. Thereafter, growth will level off at 2.0% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firms equity cost of capital is 8.0%? The value of Gillettes stock is Round to the nearest cent.)

Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12.0% per year thereafter until the 5th year. Thereafter, growth will level off at 2.0% 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 8.0%? The value of Gillette's stock is $. (Round to the nearest cent.)

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Status NEW Posted 01 Apr 2018 07:04 PM My Price 5.00

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