Coca Cola's dividend is $1/share per quarter. On average, the dividends are expected to grow by 2%

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Coca Cola's dividend is $1/share per quarter. On average, the dividends are expected to grow by 2% per quarter. Assuming the expected return of the stock is 5% per quarter. What is the share price after 20 years?

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Posted Date: Apr 27, 2024 08:04 AM

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Coca Cola's dividend is $1/share per quarter. On average, the dividends are expected to grow by 2%

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Expert Answer:

To calculate the share price after 20 years we can use the dividend discount model DDM which values ... View the full answer

Contemporary Financial Management

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