Colgate-Palmolive Company has just paid an annual dividend of $1.17. Analysts are predicting dividends to...
90.2K
Verified Solution
Link Copied!
Question
Finance
Colgate-Palmolive Company has just paid an annual dividend of $1.17. Analysts are predicting dividends to grow by $0.12 per year over the next five years. After then, Colgate's earnings are expected to grow 5.8% 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? The price per share is $ (Round to two decimal places.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
