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Colgate-Palmolive Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7% per year growth rate in earnings over the next five
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Colgate-Palmolive Company has just paid an annual dividend of
$1.04.
Analysts are predicting an
10.7%
per year growth rate in earnings over the next five years. After that, Colgate's earnings are expected to grow at the current industry average of
4.7%
per year. If Colgate's equity cost of capital is
9.5%
per year and its dividend payout ratio remains constant, for what price does the DDM predict Colgate stock should sell?
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