Question
Procter and Gamble (PG) paid an annual dividend of $2.95 in 2021 . You expect PG to increase its dividends by 8.3 % per year
Procter and Gamble (PG) paid an annual dividend of $2.95 in 2021 . You expect PG to increase its dividends by 8.3 % per year for the next five years (through 2026), and thereafter by 3.5% per year. If the appropriate equity cost of capital for Procter and Gamble is 7.4% per year, use the dividend-discount model to estimate its value per share at the end of 2021.
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Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo
4th edition
013408327X, 978-0134083278
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