Since General Mills and Proctor and Gamble are mature companies in stable markets, it is likely that they have approximately constant growth at about the rate of GDP growth.GDP is expected to grow at 3.5% this year.Based on this, what would the dividend growth model predict the price of each of these should be? 

How much cash flow did the Fong's receive from their stock portfolio in this year? The stock portfolio is below.

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Stock Portfolio Name Progressive Corp. Medtronic Starbucks Berkshire Hath - B Procter & Gamble Visa, Inc. PACCAR Microsoft Rangold Pioneer Nat Res Amgen Coca-Cola Bristol-Meyers Squibb Maximus Starwood J2 Global Walmart General Mills Apple Home Depot Monsanto Exxon Shares 125 200 100 100 200 150 400 475 125 200 200 300 150 250 450 250 125 Global Robotics 200 200 425 200 Nike Toyota Pfizer 300 250 600 100 200 Price 7/1/2014 $25.48 $63.91 $39.10 $127.24 Price 7/1/2015 $28.44 $2.24 $0.69 0.87 $74.08 $2.15 $1.52 1.44 $53.89 $1.78 $0.64 0.87 $137.52 $7.28 $0.00 0.29 EPS Dividend Beta $79.28 $79.72 $2.44 $2.65 $53.17 $67.85 $2.42 $0.48 0.85 $63.78 $64.59 $4.47 $0.96 1.32 $41.87 $44.45 $1.48 $1.44 0.87 $84.59 $65.03 $2.23 $0.60 0.11 $228.75 $136.23 $3.40 $0.08 0.52 $120.31 $154.99 $7.55 $3.16 1.01 $42.29 $39.49 $1.71 $1.32 0.96 $48.12 $67.67 $1.07 $1.48 1.06 $42.85 $66.14 $2.37 $0.18 3.66 $81.50 $82.00 $3.29 $1.50 0.91 $52.03 $68.01 $2.50 $1.23 1.44 $75.28 $71.88 $4.79 $1.96 0.87 $52.90 $57.09 $2.11 $1.76 0.71 $93.52 $126.60 $8.65 $2.08 1.09 1.04 $81.82 $112.07 $5.13 $2.36 $124.30 $107.66 $5.41 $2.16 1.08 $101.36 $5.62 $2.92 0.93 $82.37 $26.05 $0.00 $0.00 $28.22 1.95 $1.12 0.72 $78.00 $109.43 $3.95 $122.26 $133.60 $11.76 $4.02 0.55 $30.08 $33.69 $1.41 $1.12 1.08 1.00 The return on the market has been 8.15% and the current risk-free rate is 2.05%. 0 Stock Portfolio Name Progressive Corp. Medtronic Starbucks Berkshire Hath - B Procter & Gamble Visa, Inc. PACCAR Microsoft Rangold Pioneer Nat Res Amgen Coca-Cola Bristol-Meyers Squibb Maximus Starwood J2 Global Walmart General Mills Apple Home Depot Monsanto Exxon Shares 125 200 100 100 200 150 400 475 125 200 200 300 150 250 450 250 125 Global Robotics 200 200 425 200 Nike Toyota Pfizer 300 250 600 100 200 Price 7/1/2014 $25.48 $63.91 $39.10 $127.24 Price 7/1/2015 $28.44 $2.24 $0.69 0.87 $74.08 $2.15 $1.52 1.44 $53.89 $1.78 $0.64 0.87 $137.52 $7.28 $0.00 0.29 EPS Dividend Beta $79.28 $79.72 $2.44 $2.65 $53.17 $67.85 $2.42 $0.48 0.85 $63.78 $64.59 $4.47 $0.96 1.32 $41.87 $44.45 $1.48 $1.44 0.87 $84.59 $65.03 $2.23 $0.60 0.11 $228.75 $136.23 $3.40 $0.08 0.52 $120.31 $154.99 $7.55 $3.16 1.01 $42.29 $39.49 $1.71 $1.32 0.96 $48.12 $67.67 $1.07 $1.48 1.06 $42.85 $66.14 $2.37 $0.18 3.66 $81.50 $82.00 $3.29 $1.50 0.91 $52.03 $68.01 $2.50 $1.23 1.44 $75.28 $71.88 $4.79 $1.96 0.87 $52.90 $57.09 $2.11 $1.76 0.71 $93.52 $126.60 $8.65 $2.08 1.09 1.04 $81.82 $112.07 $5.13 $2.36 $124.30 $107.66 $5.41 $2.16 1.08 $101.36 $5.62 $2.92 0.93 $82.37 $26.05 $0.00 $0.00 $28.22 1.95 $1.12 0.72 $78.00 $109.43 $3.95 $122.26 $133.60 $11.76 $4.02 0.55 $30.08 $33.69 $1.41 $1.12 1.08 1.00 The return on the market has been 8.15% and the current risk-free rate is 2.05%. 0

Answer rating: 100% (QA)

Dividend Growth Model DGM for General Mills and PG Assumptions Constant growth rate around 35 based ... View the full answer