You expect Procter Gamble will pay a dividend of $7 8 billion and repurchase $7 3 billion of its common shares next year (Year 1) with both expected to grow 5 in Year 2 and 4 in Year 3 If you expect P Gs market cap will be $340 billion at the end of Year 3, and you have calculated the cost of equity to be 8 0 , what do you estimate the true value of the companys net worth to be now (First draw a timeline Assume all cash flows are at year end ) Citigroups p e ratio is 10x, while J P Morgans p e ratio is 12 6x If you believe Citigroup has equal prospects for future eps growth, which stock would you buy

Question

You expect Procter   Gamble will pay a dividend of $7 8 billion and repurchase $7 3 billion of its common shares next year (Year 1) with both expected to grow 5  in Year 2 and 4  in Year 3  If you expect P Gs market cap will be $340 billion at the end of Year 3, and you have calculated the cost of equity to be 8 0 , what do you estimate the true value of the companys net worth to be now  (First draw a timeline  Assume all cash flows are at year end ) Citigroups p e ratio is 10x, while J  P  Morgans p e ratio is 12 6x  If you believe Citigroup has equal prospects for future eps growth, which stock would you buy

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Question

You expect Procter & Gamble will pay a dividend of $7.8 billion and repurchase $7.3 billion of its common shares next year (Year 1) with

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