Monday
March 2, 2015

Homework Help: Finance

Posted by Debbie on Saturday, July 30, 2011 at 3:20pm.

Colgate-Palmolive Company has just paid an annual dividend of $0.85. Analysts are predicting a 10% per year growth rate in earnings over the next five years. After that, Colgate’s earnings are expected to grow at the current industry average of 4.7% per year. If Colgate’s equity cost of capital is 7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Colgate stock should sell?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - Arena Distributors is a new company and currently pays no dividends. ...
finance - Company sales and profits grow at a rate of 30% per year; at the end ...
Finance - The Isberg Company just paid a dividend of $0.75 per share, and that ...
Finance - Metallica Bearings, Inc., is a young start-up company. No dividends ...
Finance - Teddy Company paid a $3.50 dividend this year (D0 = $3.50). Next year ...
Finance. PLEASE HELP ME - 1) growth rates The stock price of the company is $76 ...
Finance questions - 1) growth rates The stock price of the company is $76 ...
Finance - Simtek currently pays a $2.50 dividend (D0) per share. Next year’s ...
Finance - the dividends of the reisner company are expected to grow at an annual...
finance - The Blinkelman Corporation has just announced that it plans to ...

Members