2. Procter and Gamble Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After that, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter and Gamble stock if the firm's equity cost of capital is 8%?

2. Procter and Gamble Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After that, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter and Gamble stock if the firm's equity cost of capital is 8%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 15P

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How do I solve this corporate finance problem without using excel?

Thanks

2. Procter and Gamble Corporation will pay an annual dividend of $0.65 one year from now.
Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After that,
growth will level off at 2% per year. According to the dividend-discount model, what is the value
of a share of Procter and Gamble stock if the firm's equity cost of capital is 8%?

Subfield of finance that covers finance theory, regulation, and corporate governance. The goal of a company's finance team is to reduce a company's risk through various risk management techniques, different types of financing requirements and investments.

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