Colgate-Palmolive Company has just paid an annual dividend of $1.03. Analysts are predicting a(n) 11.1 % per
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Colgate-Palmolive Company has just paid an annual dividend of $1.03.
Analysts are predicting a(n) 11.1 %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 5.2 %per year. IfColgate's equity cost of capital is 7.5 %per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict Colgate stock should sellfor?
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