Supernormal growth you are interested in buying stock in


Question: Supernormal Growth. You are interested in buying stock in Coca-Cola (KO). You believe that the dividends will grow at 15 percent for the next four years and level off at 6 percent thereafter. Using the most recent dividend on finance.yahoo.com, if you want a 12 percent return, how much should you be willing to pay for a share of stock?

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Finance Basics: Supernormal growth you are interested in buying stock in
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