Colgate palmolive company has just paid an annual dividend


Colgate Palmolive company has just paid an annual dividend of $1.04. Analysis are predicting a(n) 10.7% per year growth rate in earnings over the next 5 yrs. After that, Colgate earnings are expected to grow at the current industry average of 5.9% per year. If Colgate's equity cost of capital is 7.1% per year and its dividend payout ratio remains constant, what price does the dividend discount model predict Colgate stock should sell for?

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Accounting Basics: Colgate palmolive company has just paid an annual dividend
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