Dividend payout ratio remainsconstant

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Colgate-Palmolive Company has just paid an annual dividend of $ 0.98. Analysts are predictinga(n)10.9 %10.9%per year growth rate in earnings over the next five years. Afterthat, Colgate's earnings are expected to grow at the current industry average of 5.4 %5.4%per year. IfColgate's equity cost of capital is 8.4 %8.4%per year and its dividend payout ratio remainsconstant, what price does thedividend-discount model predict Colgate stock should sellfor?

The price per share is $nothing. (Round to two decimalplaces.)

Reference no: EM131775043

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