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As everybody perhaps know, Coca-Cola has been a mature company for many years. Based on the last 5-year data, its dividend growth rate is 5%.

As everybody perhaps know, Coca-Cola has been a mature company for many years. Based on the last 5-year data, its dividend growth rate is 5%. Let us assume that Coca-Cola will maintain this growth rate forever and the dividend that has just been paid last year was 1.6 dollar. If stock price of Coca-Cola is $48.72 (as of Sep. 25th, 2020), then what is the required rate of return that market uses to arrive at the stock price?

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