Colgate-Palmolive Company has just paid an annual dividend of . Analysts are predicting dividends to grow by per year over the next five years. After​ then, Colgate's earnings are expected to grow per​ year, and its dividend payout rate will remain constant. If​ Colgate's equity cost of capital is per​ year, what price does the​ dividend-discount model predict Colgate stock should sell for​ today?

Answers

Answer 1

The amount of $97.85 is the price that​ dividend-discount model predict that Colgate stock should sell for​ today

Given Information

Current dividend (D0) = $1.59

   

Dividend payments for next five years includes:

D1 = 1.59 +0.18

D1 = 1.77

   

D2 = 1.77 +0.18

D2 = 1.95

D3 = 1.95 +0.18

D3 = 2.13

D4 = 2.13 +0.18

D4 =2.31

D5 = 2.31 +0.18

D5 =2.49

Year  Cash Flow         PVF at 8.1%        Present value

1            1.77                0.92506938        1.637372803    

2           1.95                0.855753358      1.668719048

3           2.13                0.791631229        1.686174517    

4           2.31                0.73231381           1.691644901    

5           2.49               0.677441082        1.686828295

Present value of Dividends                   8.3707

PV of remaining dividends in 5 year = D5 x (1+g)/(Ke-g))      

PV of remaining dividends in 5 year = 2.49(1+0.061)/(0.081-0.061)    

PV of remaining dividends in 5 year = $132.0945

Given that g=6.1%, ke=8.1%      

PV of remaining dividends in year = 0 = PV of the remaining dividends in year 5* 1/(1+0.081)^5

= 132.0945 * 1/(1+0.081)^5    

= $89.48624      

As per dividend-discount model, Colgate stock should sell for​ today = PV of Dividends till 5th year + PV of Remaining Dividend at t=0

= $89.48624 + $8.3707    

= $97.8531

= $97.85

Hence, the amount of $97.85 is the price that​ dividend-discount model predict that Colgate stock should sell for​ today.

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Related Questions

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The downfall of the textile industry in South Carolina was attributed to factors such as cheaper labor elsewhere, technology, automation, and other factors related to modernity, wages, education, and economic diversification.

What do you mean by economic diversification?

Economic diversification is the process of transitioning a country's economy from a reliance on a single revenue stream to a variety of sources coming from an expanding number of industries and markets.

It has historically been used as a tactic to promote beneficial economic growth and development.

Diversifying away from vulnerable goods, markets, and jobs in favor of revenue sources that are low-emission and more climate resilient becomes more pertinent in the context of adaptation to climate change.

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Mean for in grouped data

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To calculate the mean of grouped data, the first step is to determine the midpoint of each interval or class. These midpoints must then be multiplied by the frequencies of the corresponding classes. The sum of the products divided by the total number of values will be the value of the mean.

If only one airline serves a town, does a monopoly exist? What about competition from other services?

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If only one airline serves a town, the question of whether a monopoly exists is:

Yes, a monopoly exists

Based on the given question, we are asked to state whether a monopoly exist in a situation where there is only one airline in a town, and the answer is, yes, that is a monopoly

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In order to efficiently use his time, the conversations with friends Pete can have is 4.

The production possibilities curve depicts the ways two goods can be combined in order to fully utilise resources. The PPC is concave to the origin.

Points on the curve indicate an efficient level of production.  Point outside the PPC means that the production level is not attainable given the level of resources . Points inside the PPC indicates that resources are not been fully utilized.  

If Pete wants to write 4 blog entries, trace the 4 on the y-axis to the curve and trace it to the x-axis. Based on this, Pete can have 4 conversations with friends.

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Which of the following is classified as
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B gold and silver
C money market accounts

Answers

I think is C

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6.You now have the agreement with the company and will sign the contract as you and the company are satisfied with the contract agreement. Of course, this is will be your first step to build a strong relationship between you and your employer. Your manager will know more about you. This represent which of the negotiation process element?
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B- Manage concessions

C- Manage time

D- Build the relationship

Answers

your answer is build the relationship

Which of the following statements is the best way to state your position in a conflict?
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b.
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c.
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d.
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Answers

Answer:

A

Explanation:

A plainly states your position in an argument.

Which is not a consideration when allocating assets and diversifying? A. Real estate holdings B. Avoiding similar investments C. Rate of return D. Portfolio size​

Answers

When one is considering the allocation of their assets as well as how to diversify them, they don't consider A. Real estate holdings.

Diversification involves:

Investing in non-similar assets. Investing in a wide array of different assets to reduce risk.

When thinking about diversifying your assets, one doe not have to think about the number of real estate holdings they already hold as there are other assets to invest in.

In conclusion, option A is correct.

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Explanation:

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Answer:

B

Explanation:

Answer: B

Explanation:

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Answer:

My best guess will have to be A

Explanation:

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Answer:a control of money

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Answer:

task based maybe ?

Explanation:

if it's correct than mark me brainliest

which situation would normally involve long-term financing?

Answers

Which of the following would normally involve long-term financing?

Purchase of modern equipment;
Long-term financing is used for major purchases that are financed for a time period greater than one year such as new product development, building or purchasing new facilities, and replacing capital equipment.

The Copper Grill has the following current assets: cash, $11 million; receivables, $44 million; inventory, $45 million; and other current
assets $3 million. The Copper Grill has the following liabilities: accounts payable, $37 million; current portion of long-term debt, $6
million; and long-term debt, $11 million.
Based on these amounts, calculate the current ratio and the acid-test ratio.
Based on these amounts, calculate the current ratio and the acid-test ratio for The Copper Grill. (Round your answers to 2 decimal
places.)
The Copper Grill
Current ratio
Acid-test ratio

Answers

Answer:

Current ratio:

Current ratio=current assets/ current liabilities

Current assets= 11 million + 55 million +40 million + 6 million= 112 million

Current liabilities= 37 million + 8 million= 45 million

Current ratio= 112 million/ 45 million= 2.49

 The current ratio is a liquidity ratio that assesses a firm's capacity to pay short-term or one-year obligations. It explains to investors and other stakeholders how a firm might use current assets on its balance sheet to pay off current debt and other obligations.

 The current ratio is called "current" because it includes all current assets and liabilities, unlike many other liquidity ratios. The working capital ratio is another name for the current ratio.

 Analysts determine the ratio by comparing a company's current assets and liabilities. Cash, accounts receivable, inventory, and other current assets (OCA) that are projected to be liquidated or converted into cash in less than one year are reported as current assets on a firm's balance sheet. Accounts payable, wages, taxes payable, short-term loans, and the current portion of long-term debt are all examples of current liabilities.

Acid-test ratio

Acid test ratio= quick assets/ current liabilities

Quick assets= 11 million+ 55 million= 66 million

Current liabilities= 45 million

Acid test ratio= 66 million/ 45 million= 1.47

The acid-test ratio (ATR), also known as the quick ratio, calculates how well current assets can pay current obligations to determine a company's liquidity. Only the most liquid current assets that can be turned into cash in 90 days or less are used in the quick ratio.

 The quick ratio is computed by dividing the total cash and equivalents, accounts receivables, and marketable investments by current liabilities.

 Companies should aim for a ratio of 1.0 or above, indicating that they have sufficient current assets to meet their short-term debt commitments or expenses.

Explanation:

Current ratio= 112 million/ 45 million= 2.49

Acid test ratio= 66 million/ 45 million= 1.47

The current ratio and the acid-test ratio for The Copper Grill are 2.60 and 1.55 respectively.

What is a good current ratio?

A healthy current ratio is between 1.2 and 2, indicating that the company has twice as many current assets as liabilities to cover its debts. A current ratio of less than one indicates that the company lacks sufficient liquid assets to satisfy its short-term liabilities.

Given

cash, $11 million

receivables, $44 million;

inventory, $45 million

other current assets $3 million

accounts payable, $37 million;

current portion of long-term debt, $6 million

long-term debt, $11 million

Required to Calculate the Current ratio and Acid-test ratio =?

Current ratio = Current Assets / Current Liability

Current Assets = cash + receivables + inventory + other current assets

                         = 11 + 44 + 45 + 3 = $112 million

Current Liability = accounts payable + current portion of long-term debt

                           = 37 + 6 = $43 million

Current ratio = Current Assets / Current Liability

Current ratio = 112 / 43 = 2.60

Acid-test ratio = Current Assets - Inventory / Current Liability

                        = 112 - 45 / 43

Acid-test ratio = 1.55

Thus, The Copper Grill's current ratio and acid-test ratio are 2.60 and 1.55, respectively. The current ratio calculates a company's ability to pay short-term or current liabilities, such as payables and loans, with short-term or current assets, such as receivables, inventories, and cash.

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Roberto, Incorporated manufactures products A and B. Both products have a contribution margin ratio of 40%. What is the contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource? multiple choice $2 per minute $3 per minute $6 per minute $8 per minute

Answers

The contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource is $3 per minute.

Using this formula

Contribution margin per unit = Contribution per unit / Limiting Factor required per unit

Where:

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Let plug in the formula

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If you wish to enter the field of soil and
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4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.

The 4 year college degree is tantamount to the Bachelor degree achieved from University, college etc.

Usually, the position of forestry and related job requires the minimum of Bachelor degree from related course in the field of soil and forest conservation.

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Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at Question content area bottom Part 1 A. the par value of the stock given. B. its book value. C. its market value. D. a value assigned by the board of directors

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Based on the information given Yummy Treats Bakery should record the building at: C. its market value.

Market value is the value of an asset in the market or the amount at which an asset will be sold in the market.

Building is an asset and since common stock was issued out in exchange for a building ,  the best options is that Yummy  treats bakery should record the building at the market value the asset or the building.

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Visit ikea.my and identify the services the company provides to its customers.

Answers

okay i will thank you take care

A professional mentor should be used for guidance on which of the following?

the development of a mentee’s resume
improving of a mentee’s presentation skills
the hair color of the mentee for a date
which car would be best to rent for a weekend ski tri

Answers

Answer:

Answer:

1. The development of a mentee's resume

2. Improving of a mentee's presentation skills

Explanation:

A professional mentor can be involved in the services like developing a mentee's resume; and improving his presentation skills.

What are the roles of a professional mentor?

A professional mentor is someone who offers his services to a mentee by training in the skills that would help him in achieving his organizational and career goals.

In the above example, a professional mentor has to work on development of his mentee's resume to help him attract more employers at an attractive pay.

Hence, options A and B as aforementioned are the areas of work in which in the guidance of a professional mentor is required.

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How to make your own website ?

Answers

Answer:

Use visual studio code

Explanation:

You want to then make HTML code and CSS code 2 different files that corillate together and you need a header, footer, main, functions is CSS etc

Kevin has a client who wants to invest in an account that earns 3% interest, compounded annually. The client opens the account with an initial deposit of $5,000, and deposits an additional $5,000 into the account each year thereafter. Assuming no withdrawals or other deposits are made and that the interest rate is fixed, the balance of the account (rounded to the nearest dollar) after the tenth deposit is __________.

Answers

Considering the situation described above, the balance of the account (rounded to the nearest dollar) after the tenth deposit is "$56,650."

What is Sinking Fund?

Sinking Fund is the term used to describe the fund created by individuals by specifically setting revenue in a particular place like savings over a given period to fund a future capital expense or repayment of long-term debt.

Given that this is more like a Sinking Fund hence, we calculate using the below formula:

S = N [ (1+r)^n - 1 ] /r

where r = 0.030

n = 10 years

N = 5,000

S = 5,000 [ (1.030)^10 -1 ]/.030

= 5,000 [ 1.34 -1 ]/.030

= 5,000 [ 11.33]

= $56,650.

Therefore, we got $6,650 in concern.

Hence, in this case, it is concluded that the correct answer is "$56,650."

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Answer: $57,319

     

Explanation: I'm positive the answer is $57,319 because I had this same exact test question and my answer was correct.

Sunland Company has 1050 shares of 4%, $100 par value, cumulative preferred stock and 52500 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock

Answers

Based on the information given the annual dividend on the preferred stock is : $4,200.

Using this formula

Annual dividend=Number of shares× Par value× Shares Percentage

Where:

Number of shares=1050 shares

Par value=$100 par value

Shares Percentage=4% or 0.04

Let plug in the formula

Annual dividend=1050shares× $100×0.04

Annual dividend=$4,200

Inconclusion the annual dividend on the preferred stock is : $4,200.

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StylesQuestion 12 (Essay Worth 4 points)
(02.04 MC)
Which two investment options would be best if you are 45 years old, just starting to save, and want to retire when you are 65? Consider the kind of investment,
of return, level of risk, and other factors

Answers

Answer:

forex

Explanation:

Who should have a financial emergency plan in place?


Those with high risk

Everyone, regardless of financial health

Those with bad credi.

Those in a state of bankruptcy

Answers

Answer:

I think B. Everyone, regardless of financial health.

Explanation:

Anything can happen but, if they have a backup financial emergency plan, it can go smoother.

Hope this helps :)

I think b because everyone should have it



• • 13.16 A large St. Louis feed mill, Robert Orwig Processing,

prepares its 6-month aggregate plan by forecasting demand for

50-pound bags of cattle feed as follows: January, 1,000 bags;

February, 1,200; March, 1,250; April, 1,450; May, 1,400; and June,

1,400. The feed mill plans to begin the new year with no inventory

left over from the previous year, and backorders are not permit-

ted. It projects that capacity (during regular hours) for producing

bags of feed will remain constant at 800 until the end of April, and

then increase to 1,100 bags per month when a planned expansion

is completed on May 1. Overtime capacity is set at 300 bags per

month until the expansion, at which time it will increase to 400

bags per month. A friendly competitor in Sioux City, Iowa, is also

available as a backup source to meet demand—but can provide

only 500 bags total during the 6-month period. Develop a 6-month

Answers

The production plan is used for ensuring that the necessary preparation is completed before the start of a production cycle.

A production plan involves the allocation of resources effectively so that everything will be in place for the production stages.

Based on the computation done, the budget for January is $12800, February is $16250, March is $17175, April is $20875, May is $16900, and June is $16900.

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3. Aesop is not using traditional advertisements or discount sales to promote its products. Instead, Aesop gets its promotional communication mostly by word-of-mouth for the design of its products, stores, and events, which are a singular mix of indulgent product experiences, thoughtful language, and modern minimalist design. If you had to interact with Natura & Co SA, which customer engagement model--Natura's, The Body Shop's, or Aesop's-- would be the best for you and why?

Answers

Based on the information given, the model that will be appropriate for the company is the client commitment model.

The client commitment model is a model whereby a company provides and meet the needs of the customers. It is important as it assists the brand with comprehension.

Therefore, the interaction with interact with Natura & Co SA, will ensure that they use this model in order to get more customers, improve sales, and get more profit.

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please help!!

Bobby is an electrician who specializes in installing electronic locks. What kind of company might be interested in hiring Bobby?

A.
a national hotel chain

B.
a meat packing facility

C.
a local parks department

D.
a printing company

Answers

Answer:

a . national hotel chain

Explanation:

because electrician who install lock are supposed to work at a hotel for the safety of the people

Answer:

I think it's A ? I'm not 100% sure, but hotels often have electronic locks that you need a key card to open

What information should be included in the opening paragraph of a thank-you letter?
a.
Mention skills that were omitted during the interview
b.
Reinforce any points perceived as weaknesses
c. Mention looking forward to a response
d. Reinforce interest and fit for the position

Answers

In a "thank-you letter," the opening paragraph should d. Reinforce interest  and fit for the position.

 

In the second paragraph, you should mention skills omitted during the interview and reinforce weaknesses before stating that you look forward to receiving a response.

 

A thank-you letter should have a positive tone and convey enthusiasm for the job if this were the case. Do not overcommit yourself or sound desperate. Express your gratitude for the opportunity to learn more about the company, showing your interest in the position.

 

Thus, in the opening paragraph, you should reinforce your interest and fit for the position.

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Answer:c. mention looking forward to a response

Explanation:

what is organization?

Answers

an organized group of people with a particular purpose, such as a business or government department.

Answer:

    An Organization or Organisation is entity such as a company, An institution  or an association, Comprising one or more people and having a particular purpose. The word is derived from the a Greek word Organon, Which means tool or instrument, Musical instrument and organ....

                  ...............................

compensation Policy issues , include a company's policies concerning all the following except Select one
a Setting the salary and promotion strategy
b . The minimum salary they are legally obliged to pay
c The of paid and unpaid leaves as well as holidays
d Defining the probationary pay versus the final employment pay
e Deciding on the Payment for overtime hours.​

Answers

It should be noted that compensation policy issues refer to all the company's policies given except E. Deciding on the Payment for overtime hours.​

A compensation policy simply means the principle of action that is proposed by a company or organization in regard to the salary, benefits, and bonuses of the employee.

It includes setting the salary and promotion strategy, the minimum salary they are legally obliged to pay, etc. It doesn't have to do with deciding on the payment for overtime hours.​

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Phil's qualified education expenses for the year are $34,000. He claims a $2,500 American Opportunity Credit (based on $4,000 of his expenses). If Phil receives a $40,000 ESA distribution that includes $4,000 in earnings, how much of the entire ESA distribution will he receive tax-free

Answers

Based on the information given, the amount that will be tax-free from the ESA distribution will be $39000.

From the information given, the eligible education expenses will be:

= $34000 - $4000

= $30000

The tax free portion will be:

= (4000 × 30000) / 40000

= $3000

The total tax-free distribution will be:

= Contributions + Earnings

= $36000 + $3000

= $39000

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