Coca-Cola (KO) is a dividend-paying company. Recently, dividends for Coca-Cola have increased at about 5.5 percent per

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Coca-Cola (KO) is a dividend-paying company. Recently, dividends for Coca-Cola have increased at about 5.5 percent per year. Find the most recent closing monthly stock price under the “Mthly. Adj. Prices” link. Locate the most recent annual dividend for KO and calculate the dividend yield. Using your answer and the 5.5 percent dividend growth rate, what is the required return for shareholders? Suppose instead that you know that the required return is 13 percent. What price should Coca-Cola stock sell for now? What if the required return is 15 percent?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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