What prices does the dividend-discount model predict


Assume collate-palmolive company has just paid an annual dividend of $0.96. Analysts are predicting an 11% per year growth rate in earnings over the next five years. after then, collages earnings are expected to grow at the current industry average of 5.2% per year. If collages equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what prices does the dividend-discount model predict colgate stock should sell?

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Financial Management: What prices does the dividend-discount model predict
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