Question: Stock valuation using the 2-stage dividend discount method: Relevant data for Walmart Inc. is provided below. The Procter & Gamble Company Expected Annual Dividends Year
Stock valuation using the 2-stage dividend discount method:
Relevant data for Walmart Inc. is provided below.
| The Procter & Gamble Company | |
| Expected Annual Dividends | Year |
| $3.72 | 2023 |
| $3.92 | 2024 |
| $4.14 | 2025 |
| $4.36 | 2026 |
| 5.48% | Stage1 dividend growth (g1) |
| 2.00% | Stage2 dividend growth (g2) |
| 0.44 | Stock Beta () |
| 2.817% | Risk-free Rate (Rf) |
| 6.00% | Market Risk Premium (MRP) |
| $152.61 | Current Stock Price |
How much is the value of this company's stock using the 2-stage dividend discount method?
- Enter your answer in the following format:123.45
- Hint1: Refer to the video 'Stock Valuation: Dividend discount model' and the Excel template.
- Hint2: Compute R, CF1, CF2, CF3, and CF4 as shown in the video and then compute NPV; R=5.457%; CF4=$133.06
- Answer is between 114.61 and 124.07
- Note: There is no need to change any underlying Excel formulas.
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