Procter and Gamble (PG) paid an annual dividend of

$ 1.67$1.67

in 2009. You expect PG to increase its dividends by

7.6 %

per year for the next five years (through 2014), and thereafter by

2.9 %

per year. If the appropriate equity cost of capital for Procter and Gamble is

8.1 %

per year, use the dividend-discount model to estimate its value per share at the end of 2009.