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What price does dividend-discount model predict colgate

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Reference no: EM131511568

Assume? Colgate-Palmolive Company has just paid an annual dividend of $ 1.08. Analysts are predicting an 11.6% per year growth rate in earnings over the next five years. After? that, Colgate's earnings are expected to grow at the current industry average of 5.7 % per year. If? Colgate's equity cost of capital is 8.7% per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict Colgate stock should? sell?

Reference no: EM131511568

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