21.07.2022 - 08:06

Colgate-Palmolive Company has just paid an annual dividend of $0.95. Analysts are predicting a 10.1% 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 6.3% per

Question:

Colgate-Palmolive Company has just paid an annual dividend of $0.95. Analysts are predicting a 10.1% 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 6.3% per year.

If Colgate’s equity cost of capital is 8.7% per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict Colgate stock should sell for?

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  • Anne
    April 14, 2023 в 19:38
    The experiments differentiate between the two possible mechanisms for introducing hydroxyproline into collagen by determining when the hydroxylation of proline occurs. In the first possible mechanism, proline is hydroxylated by enzymes before incorporation into collagen. If this were the case, administering radioactive proline to a rat would result in the newly synthesized collagen from the tail being radioactive. In the second possible mechanism, a proline residue is hydroxylated after incorporation into collagen. If this were the case, administering radioactive hydroxyproline to a rat would not result in any observed radioactivity in the newly synthesized collagen. Therefore, the fact that administering radioactive proline resulted in radioactive collagen, while administering radioactive hydroxyproline did not, supports the first mechanism of hydroxylation occurring before incorporation into collagen by enzymes.
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