Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 9, Problem 13P
Colgate-Palmolive Company has just paid an annual dividend of $.50. Analysts are predicting dividends to grow by $0.12 per year over the next five years. After then, Colgate’s earnings are expected to grow 5% per year, and its
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Colgate-Palmolive Company has just paid an annual dividend of $1.39. Analysts are predicting dividends to grow by $0.14 per year over the next five years. After then, Colgate's earnings are
expected to grow 5.1% per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 7.6% 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
$1.08.
Analysts are predicting dividends to grow by
$0.11
per year over the next five years. After then, Colgate's earnings are expected to grow
6.4%
per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is
7.2%
per year, what price does the dividend-discount model predict Colgate stock should sell for today?
Question content area bottom
Part 1
The price per share is
$enter your response here.
(Round to two decimal places.)
colgate palmolive Company has just paid an annual dividend of $1.57. Analysts are predicting
dividends to grow by $0.17 per year over the next 5 years. After then, 's earnings are expected to
grow 3.6% per year, and its dividend payout rate will remain constant. If's equity cost of capital is
7.4% per year, what price does the dividend-discount model predict colgate stock should sell for
today? What is the price per share?
Chapter 9 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 9.1 - How do you calculate the total return of a stock?Ch. 9.1 - Prob. 2CCCh. 9.2 - In what three ways can a firm increase its future...Ch. 9.2 - Under what circumstances can a firm increase its...Ch. 9.3 - How does the growth rate used in the total payout...Ch. 9.3 - Prob. 2CCCh. 9.3 - Prob. 3CCCh. 9.4 - Prob. 1CCCh. 9.4 - What implicit assumptions are made when valuing a...Ch. 9.5 - State the efficient market hypothesis.
Ch. 9.5 - Prob. 2CCCh. 9 - Assume Evco, Inc., has a current price of 50 and...Ch. 9 - Anle corporation has a current price of 20, is...Ch. 9 - Suppose Acap Corporation will pay a dividend of...Ch. 9 - Prob. 4PCh. 9 - NoGrowth Corporation currently pays a dividend of...Ch. 9 - Summit Systems will pay a dividend of 1.50 this...Ch. 9 - Prob. 7PCh. 9 - Canadian-based mining company EI Dorado Gold (EGO)...Ch. 9 - In 2006 and 2007, Kenneth Cole Productions (KCP)...Ch. 9 - DFB, Inc., expects earnings at the end of this...Ch. 9 - Cooperton Mining just announced it will cut its...Ch. 9 - Procter and Gamble (PG) paid an annual dividend of...Ch. 9 - Colgate-Palmolive Company has just paid an annual...Ch. 9 - Prob. 14PCh. 9 - Halliford Corporation expects to have earnings...Ch. 9 - Prob. 16PCh. 9 - Maynard Steel plans to pay a dividend of 3 this...Ch. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Suppose that In January 2006, Kenneth Cole...Ch. 9 - In addition to footwear, Kenneth Cole Productions...Ch. 9 - You read in the paper that Summit Systems from...Ch. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33P
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