Discuss about the dividend-discount model

Reference no: EM132056886

Question: Procter and Gamble (PG) paid an annual dividend of $1, 75 in 2009. You expect PG to increase its dividends by 7.5% 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 7.9% per year, use the dividend-discount model to estimate its value per share at the end of 2009. The price per share is $

Reference no: EM132056886

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