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Part $1$

In early$2018,$ Coca$-$Cola Company$($KO$)$ had a share price of $$42\mathrm{.}1,$ and had paid a dividend of $$1\mathrm{.}52$ for the prior year. Suppose you expect$$ Coca$-$Cola to raise this dividend by approximately $6\mathrm{.}6\%$ per year in perpetuity.

a$.$ If$$ Coca$-$Cola's equity cost of capital is $8\mathrm{.}5\%,$ what share price would you expect based on your estimate of the dividend growth$$ 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$$ Coca$-$Cola's equity cost of capital is $8\mathrm{.}5\%,$ what share price would you expect based on your estimate of the dividend growth$$ rate?

$$Coca$-$Cola's price per share should be $$$enter your response here. $($Round to the nearest$$ cent.$)$

Part $2$

b$.$ Given$$ Coca$-$Cola's share$$ price, what would you conclude about your assessment of$$ Coca$-$Cola's future dividend$$ growth?

Given$$ Coca$-$Cola's share$$ price, it's dividend growth rate should be enter your response here$\%$