Yesterday, investors expected that Coca Cola pays a dividend of $2.0 in one year, that...
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Yesterday, investors expected that Coca Cola pays a dividend of $2.0 in one year, that dividends are growing at a constant rate of 2.6% and that the stocks discount rate is 7.4% 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 3.7% a year. By how much does the stock price adjust? Report your answer in dollars with two decimals.
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