Colgate-Palmolive Company has just paid an annual dividend of $ 1.96.Analysts are predicting dividends to...
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Colgate-Palmolive Company has just paid an annual dividend of $ 1.96.Analysts are predicting dividends to grow by $ 0.17 per year over the next five years. After then, Colgate's earnings are expected to grow 6.2 %per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 7.3 %per year, what price does the dividend-discount model predict Colgate stock should sell for today?
The price per share is
$
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