Analysts are predicting an 101 per year growth rate in


Question: 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?

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Finance Basics: Analysts are predicting an 101 per year growth rate in
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