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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Assume Gillette Corporation will pay an annual dividend of $ 0.65 one year from now.
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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