An MBA student is analyzing potential investments in Coca$-$Cola $($KO$)$ and PepsiCo $($PEP$)$ using the two$-$stage Dividend Discount Model. This model is particularly useful for companies whose dividends are expected to grow at different rates over time.

Coca$-$Cola $($KO$)$:

Current Dividend Per Share: $$1\mathrm{.}50$

Growth Rate for Next $5$ Years: $8\mathrm{.}5\%$ per year

Perpetual Growth Rate After $5$ Years: $3\%$

PepsiCo $($PEP$)$:

Current Dividend Per Share: $$4\mathrm{.}09$

Growth Rate for Next $4$ Years: $10\%$ per year

Perpetual Growth Rate After $4$ Years: $3\mathrm{.}5\%$

What stock is a better investment, why?