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Colgate Palmolive company has just paid an annual dividend of $1.04. Analysis? are predicting a(n) 10.7% per year growth rate in earnings over the next 5 yrs. After that, Colgate earnings are expected to grow at the current industry average of 5.9% per year. If Colgate's equity cost of capital is 7.1% per year and its dividend payout ratio remains constant, what price does the dividend discount model predict Colgate stock should sell for?
Paper#9255908 | Written in 27-Jul-2016Price : $17.85