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What price does the dividend-discount model predict

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Question - Player Colgate-Palmolive Company has just paid an annual dividend of $ 0.91$0.91. Analysts are predicting a(n) 11.4 %11.4% 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 5.8 %5.8% per year. If Colgate's equity cost of capital is 7.3 %7.3% per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict Colgate stock should sell for?

Reference no: EM132455226

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