Question: Calculate Coca Cola current stock value using DDM. Stock value = Dividend per share / (discount rate - dividend growth rate) DPS(t) or TV(t) Present
Calculate Coca Cola current stock value using DDM. Stock value = Dividend per share / (discount rate - dividend growth rate)
| DPS(t) or TV(t) | Present value at 9.67% | ||
| 0 | DPS(0) | 1.48 | |
| 1 | DPS(1) | 1.25 | 1.14 |
| 2 | DPS(2) | 1.12 | 0.93 |
| 3 | DPS(3) | 1.07 | 0.81 |
| 4 | DPS(4) | 1.07 | 0.74 |
| 5 | DPS(5) | 1.14 | 0.72 |
| 5 | Terminal Value | 32.80 | 20.68 |
| Intrinsic value of Coca-Cola's common stock (per share) | $25.01 | ||
| Current share price | $42.68 | ||
| Coca-Cola Co., required rate of return | |
| Expected rate of return | 12.50% |
current dividend per share is $1.50
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