A-1) Procter and Gamble (PG) paid an annual dividend of $ 1.76 in 2009. You expect PG to increase its dividends by 7.7 % per year for the next five years (through 2014), and thereafter by 3.5 % per year. If the appropriate equity cost of capital for Procter and Gamble is 7.9 % per year, use the dividend-discount model to estimate its value per share at the end of 2009. The price per share is $ nothing. (Round to the nearest cent.)

A-2)

Colgate-Palmolive Company has just paid an annual dividend of$ 1.65.Analysts are predicting dividends to grow by$ 0.12.

per year over the next five years. After then, Colgate's earnings are expected to grow6.8 %.

per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 8.4 %

per year, what price does the dividend-discount model predict Colgate stock should sell for today?

The price per share is $nothing.

(Round to two decimal places.)