Colgate-Palmolive Company has just paid an annual dividend of $1.99. Analysts are predicting dividends to grow by $0.17 per year over the next 5 years. After then, Colgate's earnings are expected to grow 4.4% per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 6.7% per year, what price does the dividend-discount model predict Colgate stock should sell for today? The price per share is $ (Round to two decimal places.)

Colgate-Palmolive Company has just paid an annual dividend of $1.99. Analysts are predicting dividends to grow by $0.17 per year over the next 5 years. After then, Colgate's earnings are expected to grow 4.4% per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 6.7% per year, what price does the dividend-discount model predict Colgate stock should sell for today? The price per share is $ (Round to two decimal places.)

Name: hf.3 Colgate-Palmolive Company has just paid an annual dividend of $1.
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Description: hf.3 Colgate-Palmolive Company has just paid an annual dividend of $1.99. Analysts are predicting dividends to grow by$0.17 per year over the next 5 years. After then, Colgate's earnings are expected to grow 4.4% per year, and itsdividend payout rate

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 21P

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