Question: Proctor and Gamble ( P&G ) is a well - known consumer products business. It is a mature company in a stable industry. Its current
Proctor and Gamble P&G is a wellknown consumer products business. It is a mature company in a stable industry. Its current stock price is $ The consensus estimate for growth of P&G is Last year, P&G paid a quarterly dividend of $ per share ie it paid this amount each quarter during the year P&Gs beta is they have $ million of debt and a market capitalization of $ million. Their tax rate is the coupon rate on the debt is and the yield to maturity on the debt is The riskfree rate is and assume a market risk premium of What is P&Gs intrinsic value per share, based on the dividend growth model? Would you recommend investing in P&G Why or why not?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
