use the​ dividend-discount model to estimate its value per share at the end of 2018.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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Procter and Gamble​ (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its dividends by 7.9% 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 8.9% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2018.

Divn
Div6
1
Po = E
(1* 'E)" (1+TE)$
%3D
n= 1
LO
Transcribed Image Text:Divn Div6 1 Po = E (1* 'E)" (1+TE)$ %3D n= 1 LO
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