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7. Coca-Cola stock is expected to grow at 3.0% in Year 1 and Year 2, 4% in Year 3, and then at a constant growth
7. Coca-Cola stock is expected to grow at 3.0% in Year 1 and Year 2, 4% in Year 3, and then at a constant growth rate of 2.0% for the years that follow. Assume the required rate of return (Rs) equals 7%. The company just paid a Dividend (D0) equal to 1.50. What is the expected price of this stock? (Show all dividends and Cash flows used in calculations)
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