Procter & Gamble (PG) paid an annual dividend of $3.01 in 2021. Y Procter & Gamble is 5.6% per year, use the dividend-discount mode The price per share is $ ☐ (Round to the nearest cent.)
Procter & Gamble (PG) paid an annual dividend of $3.01 in 2021. Y Procter & Gamble is 5.6% per year, use the dividend-discount mode The price per share is $ ☐ (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Procter & Gamble (PG) paid an annual dividend of $3.01 in 2021. You expect PG to increase its dividends by 8.4% per year for the next five years (through 2026), and thereafter by 3.2% per year. If the appropriate equity cost of capital for
Procter & Gamble is 5.6% per year, use the dividend-discount model to estimate its value per share at the end of 2021.
The price per share is $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe83d2dad-9499-4761-ad1c-d71e4a6c61a4%2F9b49cd49-7f19-4922-b2e3-df58bb69fcb1%2Fqsbfmm_processed.png&w=3840&q=75)
Transcribed Image Text:Procter & Gamble (PG) paid an annual dividend of $3.01 in 2021. You expect PG to increase its dividends by 8.4% per year for the next five years (through 2026), and thereafter by 3.2% per year. If the appropriate equity cost of capital for
Procter & Gamble is 5.6% per year, use the dividend-discount model to estimate its value per share at the end of 2021.
The price per share is $
(Round to the nearest cent.)
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