The Coca-Cola Company (KO) paid a dividend of $1.66 in the last year. If analysts expect that the dividend will grow 12% per year going forward, and the current stock price is $54.48 per share, what is the return shareholders are expecting?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 1P: Thress Industries just paid a dividend of 1.50 a share (i.e., D0 = 1.50). The dividend is expected...
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The Coca-Cola Company (KO) paid a dividend of $1.66 in the last year.  If analysts expect that the dividend will grow 12% per year going forward, and the current stock price is $54.48 per share, what is the return shareholders are expecting?

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