Question: Using 3 methods (dividend yield + growth rate, CAPM and bond yield + premium), calculate the cost of equity for Colgate-Palmolive corp. The current dividend
Using 3 methods (dividend yield + growth rate, CAPM and bond yield + premium), calculate the cost of equity for Colgate-Palmolive corp. The current dividend (Do) is $1.71 and dividends are expected to grow by 4% per year. The stock is currently selling for $85.48. The beta is 56, risk free rate is 1% and the market risk premium is 8%. Their bonds are yielding about 2.34%
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