What price does the? dividend-discount model predict

Reference no: EM133559850

Question: Colgate-Palmolive Company has just paid an annual dividend of $1.86. Analysts are predicting dividends to grow by $0.16 per year over the next five years. After? then, Colgate's earnings are expected to grow 5.9% per? year, and its dividend payout rate will remain constant. If? Colgate's equity cost of capital is 7.1% per? year, what price does the? dividend-discount model predict Colgate stock should sell for? today?

Reference no: EM133559850

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