In mid-2015 coca-cola company ko had a share price of 39


In mid-2015, Coca-Cola Company (KO) had a share price of $39. Its dividend was $1.00 per year, and you expect Coca-Cola to raise this dividend by approximately 7% per year in perpetuity.If Coca-Cola’s equity cost of capital is 8%, what share price would you expect based on your estimate of the dividend growth rate?

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Financial Management: In mid-2015 coca-cola company ko had a share price of 39
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