Procter and Gamble(PG) paid an annual dividend of $ 1.71

$1.71 in 2009. You expect PG to increase its dividends by 7.3 %

7.3% per year for the next five years(through 2014), and thereafter by 2.5 %

2.5% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.1 %

8.1% peryear, use thedividend-discount model to estimate its value per share at the end of 2009.