Proctor & Gamble Project

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AC551 Ttram
Project 1 Week 5

A.)   The par or stated value of P&G’s preferred stock is $1  
B.)   The par or stated value of P&G’s common stock is $1  
C.)   .975
 
D.)  In June of 2007 and 2006, 3,131,946 and 3,178,841 of common stock remain outstanding respectively. (p. 52)  
E.)   “Our first discretionary use of cash is dividend payments. Dividends per common share increased 11% to $1.28 per share in 2007. This increase represents the 51st consecutive fiscal year the Company has increased its common share dividend. Total dividend payments to both common and preferred shareholders were $4.2 billion, $3.7 billion and $2.7 billion in 2007, 2006 and 2005, respectively.” (p. 48)  

F.)   The rate of return on common stock equity in 2007, equals net income ($10..3 billion (converted to 103,000 for the sake of input in a calculator) less preferred dividends (41,797) divided by average common stockholders equity ((66,760 + 62,908)/2) which is 94%. The rate of return on common stock equity in 2006, (8,700,000-161,000/62,908) 135%  

G.)  The payout ratio for 2007 and 2006 was (Cash dividend divided by net income-preferred dividends (2007: 420,000/$103,000-41,797) is 6.86. The payout ratio for 2006 (270,000/8,700,000-161,000) is 3.16  

H.)  The market price range of P&G’s common stock during the quarter ended June 30, 2007 was $60.76 to $64.75 (p. 73)  
 
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