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ColgatePalmolive(CL)is currently selling for approximately $71. Their dividend is currently $1.76 and they have been growing...

ColgatePalmolive(CL)is currently selling for approximately $71. Their dividend is currently $1.76 and they have been growing their dividend data constant rate of 4%. If our required rate of return is 8%, using the constant perpetual growth model,what would we believe CL is worth? Is CL a potentially good investment?Would you buy CL?

Assume it is January1,2020. Merck Pharmaceuticals(MRK) is currently selling for $80. Dividends for 2020 are expected to be $2.44 per share.We expect that dividends in 2021 will be $2.54 and in 2022 they will be $2.64. We will be selling the stock at the end of 2022 and we expect the price to be$95 per share at that time. Our required rate of return is 10%. Using the Discounted Cash Flow Model stock valuation formula​ (Valueofstock=presentvalueoffuturedividends+presentvalueofpriceofstockwhenweplantosell)​, Calculate the present value of the future cash flows from this stock. Would you consider buying MRK?

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