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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