Coca-cola share? price

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In? mid-2015, Coca-Cola Company? (KO) had a share price of $ 42.75?, and had paid a dividend of $ 1.45 for the prior year. Suppose you expect? Coca-Cola to raise this dividend by approximately 6.9 % per year in perpetuity.

a. If? Coca-Cola's equity cost of capital is 8.5 % what share price would you expect based on your estimate of the dividend growth? rate?

b. Given? Coca-Cola's share? price, what would you conclude about your assessment of? Coca-Cola's future dividend? growth?

Reference no: EM132579726

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