Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 5. th year. Thereafter, growth will level off at 2.4% per year. According to the dividend-discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.9%? Question content area bottom Part 1 The value of a Gillette share is $ enter your response here. (Round to the nearest cent.)
Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 5. th year. Thereafter, growth will level off at 2.4% per year. According to the dividend-discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.9%? Question content area bottom Part 1 The value of a Gillette share is $ enter your response here. (Round to the nearest cent.)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter15: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 3MC: Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming...
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Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 5. th year. Thereafter, growth will level off at 2.4% per year. According to the dividend-discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.9%? Question content area bottom Part 1 The value of a Gillette share is $ enter your response here. (Round to the nearest cent.)
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