Question

In: Finance

Procter and Gamble​ (PG) paid an annual dividend of $ 1.79 in 2009. You expect PG...

Procter and Gamble​ (PG) paid an annual dividend of $ 1.79 in 2009. You expect PG to increase its dividends by 7.3% per year for the next five years​ (through 2014), and thereafter by 3.4 % per year. If the appropriate equity cost of capital for Procter and Gamble is 8.5% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2009.

The price per share is______​$ (round to the nearest cent).

Solutions

Expert Solution

NO INTERMEDIATE ROUNDING IS DONE. THANK YOU.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Procter and Gamble? (PG) paid an annual dividend of $ 1.73 in 2009. You expect PG...
Procter and Gamble? (PG) paid an annual dividend of $ 1.73 in 2009. You expect PG to increase its dividends by 8.4 % 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 7.3 % per? year, use the? dividend-discount model to estimate its value per share at the end of 2009.
Procter and Gamble​ (PG) paid an annual dividend of $ 1.68 in 2009. You expect PG...
Procter and Gamble​ (PG) paid an annual dividend of $ 1.68 in 2009. You expect PG to increase its dividends by 7.3 % per year for the next five years​ (through 2014), and thereafter by 3.2 % per year. If the appropriate equity cost of capital for Procter and Gamble is 7.2 % per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2009. a.) What is the price per share? **Please show all...
Procter and Gamble​ (PG) paid an annual dividend of $ 1.66 in 2009. You expect PG...
Procter and Gamble​ (PG) paid an annual dividend of $ 1.66 in 2009. You expect PG to increase its dividends by 7.1 % per year for the next five years​ (through 2014), and thereafter by 2.8 % per year. If the appropriate equity cost of capital for Procter and Gamble is 8.7 % per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2009. The price per share is______​$ (round to the nearest cent)....
Procter and Gamble(PG) paid an annual dividend of $1.77 in 2009. You expect PG to increase...
Procter and Gamble(PG) paid an annual dividend of $1.77 in 2009. You expect PG to increase its dividends by 7.1% per year for the next five years(through 2014), and thereafter by 2.7%er year. If the appropriate equity cost of capital for Procter and Gamble is 8.2% per year, use the dividend-discount model to estimate its value per share at the end of 2009. The price per share is _____(two decimal)
Congratulations, you have been hired as an analyst at the Procter and Gamble Co. (PG).  Your first...
Congratulations, you have been hired as an analyst at the Procter and Gamble Co. (PG).  Your first assignment is to estimate the appropriate rate that a new 30-year bond would need in order to be issued competitively to the public.  It is April 1, 2020 (ignore actual current market rates).  PG just made a coupon payment (semi-annual) on its "8% 2045" bonds that mature on April 1, 2045. The bonds currently sell for 104 with a par value of 100.  Kimberly-Clark Corp. (KMB) has...
A company just paid a dividend of $1.53 per share and you expect the dividend to...
A company just paid a dividend of $1.53 per share and you expect the dividend to grow at a constant rate of 5.6% per year indefinitely into the future. If the required rate of return is 13.4% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.)
A company just paid a dividend of $0.79 per share and you expect the dividend to...
A company just paid a dividend of $0.79 per share and you expect the dividend to grow at a constant rate of 5.2% per year indefinitely into the future. If the required rate of return is 12.4% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.) A 6.4% coupon bearing bond pays interest semi-annually and has a maturity of 6 years. If the current price of the bond is $1,023.87,...
Apple just paid an annual dividend of $3. Analysts expect that the company will increase dividends...
Apple just paid an annual dividend of $3. Analysts expect that the company will increase dividends at a rate of 9% per year during the next three years, and then increase at a constant rate of 2.5% forever. If the discount rate of Apple is 12%, what is the price of Apple’s stock today?
Whizz Corp. has recently paid a dividend of $3 per share. You expect that the dividend...
Whizz Corp. has recently paid a dividend of $3 per share. You expect that the dividend will be $4 next year (t=1), increase 20% the following year (t=2), then grow at a rate of 5% indefinitely (after t=2). The company's debt are worth $75 million,and its debt is worth $75 million. The yield of maturity of the bond is 4%. Its beta is 2. You estimate that the risk-free rate is 5%,and the market risk premium is 5% as well....
InterTune, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase...
InterTune, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase by 15% next year, 10% the following two years, and then 4% indefinitely thereafter. If you require a rate of return of 10%, what is the most you should be willing to pay for a share of InterTune stock?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT