Colgate Palmolive company just paid
$1.12 per share in dividends yesterday. Due to high profits,
analysts are expecting 10% per year next year and 14% per year in
the following 2 years. After which dividends are
expected to increase by 3.7% per year,
forever. The required return on stock is 12.5%, compounded weekly
and dividend are paid annually. What is the intrinsic value of this
stock?
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