If colgates equity cost of capital is 71 per year what


Colgate-Palmolive Company has just paid an annual dividend of $1.89. Analysts are predicting dividends to grow by $0.16 per year over the next five years. After? then, Colgate's earnings are expected to grow 5.5% per? year, and its dividend payout rate will remain constant. If? Colgate's equity cost of capital is 7.1% per? year, what price does the? dividend-discount model predict Colgate stock should sell for? today? What is the price per share?

Solution Preview :

Prepared by a verified Expert
Finance Basics: If colgates equity cost of capital is 71 per year what
Reference No:- TGS02304529

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)