Procter and Gamble (PG) paid an annual dividend of $2.89 in 2018. You expect PG to increase its dividends by 7.7% per year for the next five years (through 2023), and thereafter by 3.3% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.7% per year, use the dividend-discount model to estimate its value per share at the end of 2018. (Round to the nearest cent.)

Procter and Gamble (PG) paid an annual dividend of $2.89 in 2018. You expect PG to increase its dividends by 7.7% per year for the next five years (through 2023), and thereafter by 3.3% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.7% per year, use the dividend-discount model to estimate its value per share at the end of 2018. (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 3P

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