Colgate-Palmolive Company has just paid an annual dividend of $ 0.87$ Analysts are predicting a (n)11.9 % per year growth rate in earnings over the next five years. Afterthat Colgate’s earnings are expected to grow at the current industry average of 5.7 % per year. If Colgate’s equity cost of capital is 7.6 % per year and its dividend payout ratio remainsconstant what price does thedividend-discount model predict Colgate stock should sellfor?
