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QUESTION 6 (10 points) After learning about the dividend discount model (DDM), you are interested in applying the method to compute the value of Coca Cola's stock. Using Factset, you collected following information: Return on equity (ROE) = 40% Average analysts' EPS estimates for next year = $2.25 Dividend payout ratio = 70% You expect Coca Cola to grow at the sustainable growth rate for next seven years (Yr 1 ~ Yr 7) before settling into a steady growth rate of 2.5% starting from Yr 8. Compute the Coca Cola's stock value assuming that your require return (discount rate) is 5.25%