What price does dividend-discount model predict

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Reference no: EM131499070

Assume? Colgate-Palmolive Company has just paid an annual dividend of $ 0.99

Analysts are predicting an 10.1 % per year growth rate in earnings over the next five years. After? that, Colgate's earnings are expected to grow at the current industry average of 5.3 % per year. If? Colgate's equity cost of capital is 7.8 % per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict Colgate stock should? sell?

Reference no: EM131499070

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