Ifcolgates equity cost of capital is 84 84per year and its


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.)

Solution Preview :

Prepared by a verified Expert
Business Management: Ifcolgates equity cost of capital is 84 84per year and its
Reference No:- TGS02570554

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)