What price does the dividend-discount model predict colgate


Colgate-Palmolive Company has just paid an annual dividend of $1.23. Analysts are predicting dividends to grow by $0.19 per year over the next five years. After then, Colgate's earnings are expected to grow 5.8 % per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 8.7 % per year, what price does the dividend-discount model predict Colgate stock should sell for today?

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Financial Management: What price does the dividend-discount model predict colgate
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