Colgate-Palmolive Company has just paid an annual dividend of $1.50. Analysts are predicting dividends to grow by
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Colgate-Palmolive Company has just paid an annual dividend of $1.50. 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 6% per year, and its dividend payout rate will remain constant. If Colgate’s equity cost of capital is 8.5% per year, what price does the dividend-discount model predict Colgate stock should sell for today?
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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