Proctor & Gamble is one of the leading global consumer product companies, owning some of the most valuable brands in the world, including Gillette razors, Pampers diapers, Tide detergents, Crest toothpaste and Vicks cough medicine. P&G has paying dividends regularly in the past, making it a preferable investment option for many potential investors. Mr. Madhu Kumar, has analysed and summarised the following data about the company. You are required to value the stocks of P&G using Dividend Discount model and suggest Mr. Madhu Kumar whether to buy the stock at $ 68 from the market. . - Earnings for 2010 $ 12,736 million, out. of which 49.74% was paid as dividend ~ BPS -$3.82 and DPS -$l.92 in 2010 ' Risk free rate - 3.50% and mature market equity i risk premium - 5% : For next 5 After 5 years years Expected ROE 20% 12% Expected Retention Ratio 50% ? Expected growth rate ? 3% Beta 0.90 1