(Answered) Colgate-palmolive company has just paid an annual dividend

Management Studies

Colgate-Palmolive Company has just paid an annual dividend of $ 0.89$0.89. Analysts are predictinga(n)10.6 %10.6%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 5.3 %5.3%per year. IfColgate's equity cost of capital is 9.1 %9.1%per year and its dividend payout ratio remainsconstant, what price does thedividend-discount model predict Colgate stock should sellfor?

The price per share is $______________. (Round to two decimal places.)

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