In early$2018,$ Coca$-$Cola Company$($KO$)$ had a share price of

$ $45\mathrm{.}47$$$45\mathrm{.}47,$

and had paid a dividend of

$ $1\mathrm{.}45$$$1\mathrm{.}45$

for the prior year. Suppose you expect$$ Coca$-$Cola to raise this dividend by approximately

$6\mathrm{.}3\%6\mathrm{.}3\%$

per year in perpetuity.

a$.$ If$$ Coca$-$Cola's equity cost of capital is

$8\mathrm{.}2\%8\mathrm{.}2\%,$

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?