In early 2018, Coca-Cola Company (KO) had a share price of $43.92, and had paid a dividend of $1.51for the prior year. Suppose you expect Coca-Cola to raise this dividend by approximately 6.9% per year in perpetuity.

a. If Coca-Cola's equity cost of capital is 8.3%, 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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Part 1

a. If Coca-Cola's equity cost of capital is 8.3%, what share price would you expect based on your estimate of the dividend growth rate? Coca-Cola's price per share should be $enter your response here. (Round to the nearest cent.)