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Procter and Gamble​ (PG) paid an annual dividend of $2.83 in 2018. You expect PG to increase its dividends by 7.8% per year for the next five years​ (through 2023), and there after by 2.7% per year. If the appropriate equity cost of capital for Procter an

Procter and Gamble (PG) paid an annual dividend of $2.83 in 2018. You expect PG to increase its dividends by 7.8% per year for the next five years (through 2023), and there after by 2.7% 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 2018.

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Ke 2.83*1.078 2019 D1 2020 D2 2021 D3 2022 04 2.83*1.078*1.078 2.83*1.078*1.078*1.078 2.83*1.078*1.078*1.078*1.078 2.83*1.078

answered by: Andrew San Andres
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Procter and Gamble​ (PG) paid an annual dividend of $2.83 in 2018. You expect PG to increase its dividends by 7.8% per year for the next five years​ (through 2023), and there after by 2.7% per year. If the appropriate equity cost of capital for Procter an
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