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Anna007 [38]
3 years ago
10

Colgate-Palmolive Company has just paid an annual dividend of $ 1.50$1.50. Analysts are predicting dividends to grow by $ 0.12$0

.12 per year over the next five years. After​ then, Colgate's earnings are expected to grow 6.0 %6.0% per​ year, and its dividend payout rate will remain constant. If​ Colgate's equity cost of capital is 8.5 %8.5% per​ year, what price does the​ dividend-discount model predict Colgate stock should sell for​ today?
Business
1 answer:
klio [65]3 years ago
8 0

Answer:

The price does the​ dividend-discount model predict Colgate stock should sell for​ today is $66.47

Explanation:

In order to calculate the price does the​ dividend-discount model predict Colgate stock should sell for​ today we would have to calculate first the Present value of dividend of next 5 years as follows:

Present value of dividend of next 5 years as follows=

Year Dividend Discount factor Present value      

a             b          c=1.085^-a             d=b*c      

1 $       1.62 0.921659 $       1.49      

2 $       1.74 0.849455 $       1.48      

3 $       1.86 0.782908 $       1.46      

4 $       1.98 0.721574  $       1.43      

5 $       2.10 0.665045 $       1.40      

Total                                   $       7.25

Then, we have to calculate the Present value of dividend after 5 years as follows:

Present value of dividend after 5 years=D5*(1+g)/(Ke-g)*DF5

Present value of dividend after 5 years=$2.10(1+6%)/(8.50%-6%)* 0.665045

Present value of dividend after 5 years=$59.22

Current value of stock=Present value of dividend of next 5 years+ Present value of dividend after 5 years    

Current value of stock= $7.25+$59.22      

Current value of stock=$66.47        

The price does the​ dividend-discount model predict Colgate stock should sell for​ today is $66.47

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Answer:

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Explanation:

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-M0: narrowly, it means the hard currency in circulation

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-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.

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-MZM: finally, this indicates the money market deposits.

That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.

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Identify labour supply-demand gaps

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Please hep me solve this thank you!Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out a
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Answer:

$546,750

Explanation:

Sales                  2,498,000

COGS                (1,376,000)

gross profit        1,  112,000

S&A salaries        (219,000)

other S&A           (346,000)

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<u>actual overhead:</u> 176,000 + 420,000 = 596,000

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As the applied was lower it is underapplied we need to recognzie more cot thus, the net income decrease.

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