1) Colgate-Palmolive Company has just paid an annual dividend of $ 0.89. Analysts are predictinga(n) 10.3 %per year growth rate in earnings over the next five years. Afterthat, Colgate's earnings are expected to grow at the current industry average of 5.9 %per year. IfColgate's equity cost of capital is 7.2 % per year and its dividend payout ratio remainsconstant, what price does thedividend-discount model predict Colgate stock should sellfor?

2) Colgate-Palmolive Company has just paid an annual dividend of $0.85. Analysts are predicting a 10% per year growth rate in earnings over the next five years. After that, Colgates earnings are expected to grow at the current industry average of 4.7% per year. If Colgates equity cost of capital is 7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Colgate stock should sell?

Both same question different numbers but getting number 1 only is perfect!!