Dividend-discount model predict colgate stock should sell

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Reference no: EM13847616

Colgate-Palmolive Company has just paid an annual dividend of $0.93. Analysts are predicting a 10.6% per year growth rate in earninings over the next five years. After that, Colgate's earnings are expected to grow at the current industry average of 5.6% per year. If Colgate's equity cost of capital is 7.4% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Colgate stock should sell?

round 2 decimal places.

Reference no: EM13847616

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