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Yesterday, investors expected that Coca Cola pays a dividend of $ 2 . 6 in one year, that dividends are growing at a constant rate
Yesterday, investors expected that Coca Cola pays a dividend of $ in one year, that dividends are growing at a constant rate of and that the stocks discount rate is per year. Today, you open the WSJ and come across an article that mentions that Coca Cola is launching a global marketing campaign that increase the stocks dividend growth expectations to a year. By how much does the stock price adjust? Assume that markets are efficient. Report your answer in dollars with two decimals.
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