Colgate-Palmolive Company has just paid an annual dividend of $1.08. Analysts are predicting dividends to grow by $0.12
Posted: Fri Jul 01, 2022 7:50 am
Colgate-Palmolive Company has just paid an annual dividend of$1.08. Analysts are predicting dividends to grow by $0.12 per yearover the next five years. After then, Colgate's earnings areexpected to grow 6.2% per year, and its dividend payout rate willremain constant. If Colgate's equity cost of capital is 9.7% peryear, what price does the dividend-discount model predict Colgatestock should sell for today? Please use NPV function on excel tosolve