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In early 2018 , Coca-Cola Company (KO) had a share price of $43, and had paid a dividend of $1.49 for the prior year. Suppose

image text in transcribed In early 2018 , Coca-Cola Company (KO) had a share price of $43, and had paid a dividend of $1.49 for the prior year. Suppose you expect Coca-Cola to raise this dividend by approximately 6.3% per year in perpetuity. a. If Coca-Cola's equity cost of capital is 8.2%, 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

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