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Procter and Gamble​ (PG) paid an annual dividend of $2.86 in 2018. You expect PG to increase its dividends by 8.7% per year for the next five years​ (through 2023), and thereafter by 2.7% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.3% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2018.

Procter and Gamble​ (PG) paid an annual dividend of $2.86 in 2018. You expect PG to increase its dividends by 8.7% per year for the next five years​ (through 2023), and thereafter by 2.7% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.3% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2018.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Procter and Gamble​ (PG) paid an annual dividend of $2.86 in 2018. You expect PG to increase its dividends by 8.7% per year for the next five years​ (through 2023), and thereafter by 2.7% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.3% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2018.

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