Valuation of dividends for 2024 through 2026 Total dividends for common shareholders Present value of dividends,...

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Valuation of dividends for 2024 through 2026 Total "dividends" for common shareholders Present value of dividends, assuming a 7% cost of equity 2024E 2025E 2026E S 18,177 S 18,808 $ 19,453 SS S 16,988 $ 16,428 S 15,879 49,296 Sum of present values, 2024 through 2026 Valuation of dividends after 2026 Forecasted dividends for 2027 Continuing value (aka terminal value), assuming a 2% perpetual growth rate Present value of continuing value Total value of dividends (cell B4 plus cell B9) SSS 20,311 S 406,213 331,591 S 380.886 Number of common shares outstanding 2,357 Estimated value per common share of Procter & Gamble Actual value per common share of Procter & Gamble, as of Friday, Feb. 9 ssss S 161.58 S 157.42 This info is from the last assignment you did (the dividend discount model) but I left it here so you could see how it differs from the residual income model on the right This info is the new info for this assignment (estimating the per-share stock price by using the residual income model) aluation of residual income for 2024 through 2026 2024E 2025E ZUZOE Residual income $ $ Present value of residual income, assuming a 7% cost of equity Sum of present values, 2024 through 2026 $ $ Valuation of dividends after 2026 Forecasted residual income for 2027 Continuing value (aka terminal value), assuming a 2% perpetual growth rate Present value of continuing value Total value of residual income (cell G4 plus cell G9) Book value of common equity at the beginning of 2024 Total value of common equity Number of common shares outstanding Estimated value per common share of Procter & Gamble $ $ $ 45,958 2,357 Actual value per common share of Procter & Gamble, as of Friday, Feb. 9 $ 157.42 Instructions: Use the sum function to calculate the sum of present values for 2024 through 2026 in cell G4. Use a formula to calculate the continuing in cell G8. Remember that the continuing value is equal to the forecasted residual income for the first year outside the forecast horizon (2027) divided by (r - g), where r is the cost of equity and g is the terminal growth rate. Use a formula to calculate the total value of common equity (it's the sum of the total value of residual income plus the book value of common equity at the beginning of 2024). Use a formula to calculate the implied share price (cell G15). It's the total value of common equity divided by the number of common shares outstanding. Valuation of dividends for 2024 through 2026 Total "dividends" for common shareholders Present value of dividends, assuming a 7% cost of equity 2024E 2025E 2026E S 18,177 S 18,808 $ 19,453 SS S 16,988 $ 16,428 S 15,879 49,296 Sum of present values, 2024 through 2026 Valuation of dividends after 2026 Forecasted dividends for 2027 Continuing value (aka terminal value), assuming a 2% perpetual growth rate Present value of continuing value Total value of dividends (cell B4 plus cell B9) SSS 20,311 S 406,213 331,591 S 380.886 Number of common shares outstanding 2,357 Estimated value per common share of Procter & Gamble Actual value per common share of Procter & Gamble, as of Friday, Feb. 9 ssss S 161.58 S 157.42 This info is from the last assignment you did (the dividend discount model) but I left it here so you could see how it differs from the residual income model on the right This info is the new info for this assignment (estimating the per-share stock price by using the residual income model) aluation of residual income for 2024 through 2026 2024E 2025E ZUZOE Residual income $ $ Present value of residual income, assuming a 7% cost of equity Sum of present values, 2024 through 2026 $ $ Valuation of dividends after 2026 Forecasted residual income for 2027 Continuing value (aka terminal value), assuming a 2% perpetual growth rate Present value of continuing value Total value of residual income (cell G4 plus cell G9) Book value of common equity at the beginning of 2024 Total value of common equity Number of common shares outstanding Estimated value per common share of Procter & Gamble $ $ $ 45,958 2,357 Actual value per common share of Procter & Gamble, as of Friday, Feb. 9 $ 157.42 Instructions: Use the sum function to calculate the sum of present values for 2024 through 2026 in cell G4. Use a formula to calculate the continuing in cell G8. Remember that the continuing value is equal to the forecasted residual income for the first year outside the forecast horizon (2027) divided by (r - g), where r is the cost of equity and g is the terminal growth rate. Use a formula to calculate the total value of common equity (it's the sum of the total value of residual income plus the book value of common equity at the beginning of 2024). Use a formula to calculate the implied share price (cell G15). It's the total value of common equity divided by the number of common shares outstanding.