What price does the dividend discount model predict

Assignment Help Accounting Basics
Reference no: EM131073094

Colgate Palmolive company has just paid an annual dividend of $1.04. Analysis are predicting a(n) 10.7% per year growth rate in earnings over the next 5 yrs. After that, Colgate earnings are expected to grow at the current industry average of 5.9% per year. If Colgate's equity cost of capital is 7.1% per year and its dividend payout ratio remains constant, what price does the dividend discount model predict Colgate stock should sell for?

Reference no: EM131073094

Questions Cloud

Construct the exchange table for this economy : Construct the exchange table for this economy. b. [M] Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.
To implement sustainable development initiatives : Sustainable development is discussed as an application of stakeholder responsibility. Think of an organization for which you have worked (or currently work).
Analysis on a current topic or trend in criminal justice : Summarize each article or text you are going to use in this paper (at least 6 sources need to be included in this portion of the assignment). Each summary needs to be about a paragraph in length.
Illustrated in the ethics competency feature : What specific ethical principles for guiding decisions and actions are illustrated in the Ethics Competency feature titled "Johnson & Johnson's Stakeholder Ethics and Principles"?
What price does the dividend discount model predict : Colgate Palmolive company has just paid an annual dividend of $1.04. Analysis are predicting a(n) 10.7% per year growth rate in earnings over the next 5 yrs. what price does the dividend discount model predict Colgate stock should sell for
Discuss the physical changes : Discuss the physical changes, cognitive changes, and socioemotional changes. Although there is not a specific word count required I recommend a minimum of 50 to 75 words for each section.
Conduct semi-structured interview with an elderly individual : How to write an assignment on the differnces between Rorschach Inkblot Test and the Thematic Apperceptiontest. Kindly provite with two life examples based on these both tests.
Presented in the diversity competency feature : How did (or does) an organization for which you have worked (or do work) compare with the policies, practices, and goals of Verizon's workplace diversity as presented in the Diversity Competency feature?
General pattern of ethical behaviors and decision making : How would you assess Generation Y individuals as a group with respect to their general pattern of ethical behaviors and decision making within the work environment? Explain. If a generalization is possible, what is your overall assessment? Explain..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Identify an acid-base reaction and its application

Obtain soil from a nearby garden or lawn, shake it with a small amount of water, let it settle and then test the acidity of the water above the solids

  To compare statement of cash flows reporting under the

to compare statement of cash flows reporting under the direct and indirect methods select direct indirect or both

  Porter corporations balance sheet at december 31 2011 is

porter corporations balance sheet at december 31 2011 is presented below porter corporation balance sheet december 31

  Explain the three main components of stl explain the

what are the three main components of the stl?what is the difference between an stl container and an stl iterator?what

  On july 1 2011 atwater corporation issued 2000000 face

on july 1 2011 atwater corporation issued 2000000 face value 10 10-year bonds at 2271813.this price resulted in an

  On january 12009 jeans-r-us company awarded 15 million of

on january 12009 jeans-r-us company awarded 15 million of its 1 par common shares to key personnel subject to

  Morton co paid cash of 178000 to acquire zink companys net

morton co. paid cash of 178000 to acquire zink companys net assets on february 1 2013. the balance sheet data for the

  Current market conditions competitive analysis

Imagine you are part of a strategic planning group at a large corporation that is considering developing a new proposed product. The marketing director has asked your team to do a competitive market analysis to determine the product's potential su..

  Implementation of the balanced scorecard

a. Critically evaluate M&R's implementation of the balanced scorecard. Identify any strengths and weaknesses of the program. b. Was the adoption of the balanced scorecard at M&R responsible for the turnaround in its financial performance?

  During the year topaz corporation has us source income of

during the year topaz corporation has u.s. source income of 2000000 and foreign source income of 1000000. the foreign

  Which of the following is a variable cost

Which of the following is a variable cost

  Information on consumer preferences

Fast food. GfK Roper Consulting gathers information on consumer preferences around the world to help compa- nies monitor attitudes about health, food, and health care products. They asked people in many different cultures how they felt about the f..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd