What price does the? dividend-discount model predict stock

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Reference no: EM133331748

Question: Colgate-Palmolive Company has just paid an annual dividend of $1.93. Analysts are predicting dividends to grow by $0.18 per year over the next five years. After? then, Colgate's earnings are expected to grow 6.6% per? year, and its dividend payout rate will remain constant. If? Colgate's equity cost of capital is 7.5% per? year, what price does the? dividend-discount model predict Colgate stock should sell for? today?

Reference no: EM133331748

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