1 (2 points) Using the Gordon formula for dividends, find the cost of common equity for the Procter and Gamble Company (P&G, official NYSE ticker symbol PG, www.pg.com) on July 1, 2011. Use Yahoo! Finance to download the closing stock price (not adjusted) on July 1, 2011 and the history of dividends for the last six years. Note: the fiscal year for the company ends on June 30 of each calendar year.

2. (2 points) Using the financial statements provided in the Excel workbook for P&G, find total cash flow to equity for the last five years. Based on total cash flow to equity, what is the cost of common equity on July 1, 2011? Ignore any exercised options for the purpose of this assignment.

3. (2 points) Given the historical prices for P&G and the S&P 500 index on the tab named "Re - CAPM," estimate the company's beta. What is the cost of common equity based on the classical and the tax-adjusted CAPM models?

4. (2 points) Using the provided financial statements, find the cost of debt for P&G on July 1, 2011. 5. (2 points) For each of the three values of the cost of equity you computed in questions above and using the cost of debt you just found, find the corresponding weighted-average cost of capital (WACC) for P&G on July 1, 2011.

Please answer here.

https://docs.google.com/spreadsheets/d/1WQzyubDzhGuNsXeFyqhICGSwd9BnNXGHlvee7GCYV8U/edit?usp=drive_web&ouid=104476337903112257382

You will need to manually put in all financial statements.