Question
Please help me understand how to answer this question. I got it incorrectly and cannot proceed to next questions without knowing how to solve for
Please help me understand how to answer this question. I got it incorrectly and cannot proceed to next questions without knowing how to solve for similar questions like this. Please provide an excel solution for both the question and the attached sample formula.
Question: Colgate-Palmolive Company has just paid an annual dividend of $ $1.19. Analysts are predicting dividends to grow by $0.18 per year over the next five years. After? then, Colgate's earnings are expected to grow 5.2% per? year, and its dividend payout rate will remain constant. If? Colgate's equity cost of capital is 9.2% per? year, what price does the? dividend-discount model predict Colgate stock should sell for? today?
Sample Formula:
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