Stocks 1. Look up stock information for Procter & Gamble (PG) and document its current price. 2. Document the total amount of dividend payments by year for the most recent five years. 3. Using the = RATE () function, calculate the annual growth rate in the dividend payment over the last five years (hint: NPER= 4). 4. Using the growth rate (3. above) and PG's most recent total annual dividend payments, estimate its annual dividend payouts for the upcoming next year. 5. Look up the Capital Asset Pricing (CAPM) formula. 6. Look up and document the Beta of PG stock (hint: use Yahoo! Finance). 7. Look up predictions for stock market returns as estimated by the Standards and Poor's 500 (S&P500) returns in 2023. What are experts expecting to happen in the market? 8. Assume and use 12% as the long-term predicted market rate of return (aka cost of capital). 9. Look up and document the current risk-free rate of return by using the 3-month (aka) 90-day Treasury bill rate of return. 10. Look up the formula for the Gordon Constant growth rate. Using your dividend estimate (4. above), your market rate (8. above) and your growth rate (3. above), calculated the fair price estimate for PG. 11. Compare your price (8. above) to the market price and determine - should you buy now or no?

1. Look up stock information for Procter \& Gamble (PG) and document its current price. 2. Document the total amount of dividend payments by year for the most recent five years. 3. Using the = RATE ( ) function, calculate the annual growth rate in the dividend payment over the last five years (hint: NPER =4 ). 4. Using the growth rate (3. above) and PG's most recent total annual dividend payments, estimate its annual dividend payouts for the upcoming next year. 5. Look up the Capital Asset Pricing (CAPM) formula. 6. Look up and document the Beta of PG stock (hint: use Yahoo! Finance). 7. Look up predictions for stock market returns as estimated by the Standards and Poor's 500 (S\&P500) returns in 2023. What are experts expecting to happen in the market? 8. Assume and use 12% as the long-term predicted market rate of return (aka cost of capital). 9. Look up and document the current risk-free rate of return by using the 3-month (aka) 90-day Treasury bill rate of return. 10. Look up the formula for the Gordon Constant growth rate. Using your dividend estimate (4. above), your market rate (8. above) and your growth rate (3. above), calculated the fair price estimate for PG. 11. Compare your price (8. above) to the market price and determine - should you buy now or no