The Coca$-$Cola Company$$is a global soft drink beverage company $($ticker: KO$).$ The following data for$$Coca$-$Cola$$include the actual amounts for Year $0$ and the projected amounts for Years $+1$ through $+5$ for comprehensive income and common shareholders$$ equity $($amounts in millions$).$

Assume the market equity beta for Coca$-$Cola at the end of Year $0$ is $0\mathrm{.}75.$ Assume that the risk$-$free interest rate is $3\mathrm{.}0\%$ and the market risk premium is $6\mathrm{.}0\%.$ Coca$-$Cola had $4,324$ million shares outstanding at the end of Year $0,$ when the share price was $$42\mathrm{.}96.$

C$.$ Use the clean surplus accounting approach to derive the projected dividends for common shareholders for Years $+1$ through $+5$ based on the projected comprehensive income and shareholders$$ equity amounts. $($Throughout this problem, you can ignore dividends to noncontrolling interests.$)$

D$.$Use the clean surplus accounting approach to project the continuing dividend to common shareholders in Year $+6.$ Assume that the steady$-$state long$-$run growth rate will be $3\%$ in Years $+6$ and beyond.

E$.$ Using the required rate of return on common equity from Requirement a as a discount rate, compute the sum of the present value of dividends to common shareholders for Coca$-$Cola for Years $+1$ through $+5.$

F$.$ Using the required rate of return on common equity from Requirement a as a discount rate and the long$-$run growth rate from Requirement d$,$ compute the continuing value of Coca$-$Cola as of the beginning of Year $+6$ based on its continuing dividends in Years $+6$ and beyond. After computing continuing value, bring continuing value back to present value at the start of Year $+1.$

G$.$ Compute the value of a share of Coca$-$Cola common stock, as follows:

$1.$ Compute the sum of the present value of dividends including the present value of continuing value.

$2.$ Adjust the sum of the present value using the midyear discounting adjustment factor.

$3.$ Compute the per$-$share value.

H$.$ Using the same set of forecast assumptions as before, recompute the value of Coca$-$Cola shares under two alternative scenarios. To quantify the sensitivity of your share value estimate for Coca$-$Cola to these variations in growth and discount rates, compare $($in percentage terms$)$ your value estimates under these two scenarios with your value estimate from Requirement g$.$

Scenario $1$: Assume that Coca$-$Cola$$s long$-$run growth will be $2\%,$ not $3\%$ as before, and assume that its required rate of return on equity is $1$ percentage point higher than the rate you computed using the CAPM in Requirement a$.$

Scenario $2$: Assume that Coca$-$Cola$$s long$-$run growth will be $4\%,$ not $3\%$ as before, and assume that its required rate of return on equity is $1$ percentage point lower than the rate you computed using the CAPM in Requirement a$.$

I. What reasonable range of share values would you expect for Coca$-$Cola common stock? Where is the current price for Coca$-$Cola shares relative to this range? What do you recommend?