Procter and Gamble (PG) paid an annual dividend of $2.79 in 2021. You expect PG to increase its dividends by 7.8% per year for the next five years (through 2026), and thereafter by 3.3% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.4% per year, use the dividend-discount model to estimate its value per share at the end of 2021.

Q: a) Calculate the return on assets. (Enter your answer as a percent rounded to 2 decimal places.) b)…

A: Return on Assets is one of the method for determining the profitability of a company. This ratio…

Q: Epsilon Corporation will be purchasing 2,000 shares of XYZ Corporation. Last year, annual dividends…

A: Dividend discount model It is used to calculate the value of a share. Under this model, the sum of…

Q: DeSoto’s, Inc. has announced that its next annual dividend has been set at $3.75 per share. The…

A: The price of share will be calculated by Gordon's Model. As per Gordon's Model the share price will…

Q: The following are earnings and dividend forecasts made at the end of 2020 for the IBM Corporation…

A: EPS is the earning per share which is the ratio of total earnings to number of outstanding common…

Q: Slow​ 'n Steady,​ Inc., has a stock price of $31​, will pay a dividend next year of $3.30​, and…

A: Required return = (Dividend next year / Stock price) + Growth rate where, Dividend next year = $3.30…

Q: Company BestWare is expected to pay a dividend of $5.14 next year, and the company's stock is…

A: Expected dividend (D1) is $5.14. Current stock price (P0) is $59.88. WACC (r) is 12.15%.

Q: Poulter Corporation will pay a dividend of $4.75 per share next year. The company pledges to…

A: The stock price is calculated using following equation Stock price = D1r-g Where, D1 is expected…

Q: Procter and Gamble (PG) paid an annual dividend of $2.87 in 2018. You expect PG to increase its…

A: Value per share = Sum of Present Value of Dividends + Present Value of Stock Sale Price

Q: Parvis Inc. wants to calculate its cost of equity. The company paid a dividend of $0.40 this year…

A: Cost of equity represents the required rate of return of the firm for raising the equity capital.

Q: Hudson Corporation will pay a dividend of $3.20 per share next year. The company pledges to increase…

A: The dividend next year is $3.20 The growth rate is 5.30% The required return is 8.60%   To Find:…

Q: Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.30 per share at the…

A: Last dividend (D0) = $1.30 D1 = 1.18 * $1.30 = $1.534 D2 = (1.18)^2 * $1.30 = $1.81012 D3 = (1.18)^3…

Q: ou expect Fab Corp to pay a dividend of $2.14/share next year (Year 1); $2.24/share in Year 2;…

A: This is based on the dividend discount model. The dividend discount model states that value of a…

Q: Procter and Gamble (PG) paid an annual dividend of $ 2.82 in 2021. You expect PG to increase its…

A: In the given case, we have provided the annual dividend paid per share and the expected growth rate…

Q: Procter and Gamble (PG) paid an annual dividend of $2.97 in 2021. You expect PG to increase its…

A: Current value of stock =…

Q: Hudson Corporation will pay a dividend of $4.70 per share next year. The company pledges to increase…

A: Current value = Next dividend / (Required rate of return - constant growth rate) Where Next dividend…

Q: Evelyn Incorporated is expected to pay a dividend at year end of D1 = $2.25. This dividend is…

A: Before tax cost of debt =7.50% After tax cost of debt = Before tax cost of debt * (1-tax rate) After…

Q: Assume today is December 31, 2018. Imagine Works Inc. just paid a dividend of $1.25 per share at the…

A: PRICE OF STOCK = Price of stock = Present Value of Dividends +Present Value of Terminal FlowInitial…

Q: Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a…

A: The minimum rate of return required to earn on equity capital without affecting the market value of…

Q: Procter and Gamble​ (PG) paid an annual dividend of $2.83 in 2021. You expect PG to increase its…

A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…

Q: Procter and Gamble (PG) paid an annual dividend of $2.88 in 2021. You expect PG to increase its…

A: Current dividend = $2.881st stage growth rate = 7.2%2nd stage growth rate = 2.9%Cost of equity =…

Q: At the end of the year 2020 Brown Bear Corporation paid dividends $3.58 per share. The company…

A: Dividend in 2020 (D0)$3.58YearGrowth rate202113%202213%202313%202411%20258%20264%20273%Required…

Q: Citigroup, Inc. is estimated to pay dividend of $ 2.4 in 2023, $ 3.0 in 2024. Assume all dividends…

A: A discount rate is a financial technique or a tool that is used to calculate an investment's value…

Q: Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a…

A: The flotation cost is the cost that will be deducted from the actual worth of an asset. After…

Q: In December 31,2017 GE paid an annual dividend of .96. They also announced they will reduce their…

A: Note : As per the guidelines, only first three questions will be answered.  The stock price can be…

Q: Procter & Gamble (PG) paid an annual dividend of $3.01 in 2021. Y Procter & Gamble is 5.6% per year,…

A: Annual dividend = $3.01Growth rate of Dividend for first 5 years = 8.4%Growth rate of Dividend after…

Q: Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this…

A: Computation of current value of share:Current value of share is $13.64.

Q: In early​ 2018, Coca-Cola Company​ (KO) had a share price of $43.36​, and had paid a dividend of…

A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend. Now,…