Procter and Gamble (PG) paid an annual dividend of $3.40 in 2021. You expect PG to increase its dividends by 8.0% per year for the next five years (through 2026), and thereafter by 3.0% per year. If the appropriate equity cost of capital for Procter and Gamble is 6.0% 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.)

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
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Procter and Gamble (PG) paid an annual dividend of $3.40 in 2021. You expect PG to increase its dividends by 8.0%
per year for the next five years (through 2026), and thereafter by 3.0% per year. If the appropriate equity cost of capital
for Procter and Gamble is 6.0% 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.)
Transcribed Image Text:Procter and Gamble (PG) paid an annual dividend of $3.40 in 2021. You expect PG to increase its dividends by 8.0% per year for the next five years (through 2026), and thereafter by 3.0% per year. If the appropriate equity cost of capital for Procter and Gamble is 6.0% 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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