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Determine the dividend discount model

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Marty is very fond of cola beverages and wants to include either Coca-Cola (KO - NYSE) or Pepsi (PEP - NYSE) in the large-cap equity portion of the portfolio. Using the dividend discount model, which of the two stocks is more attractive? What are the assumptions we must make in order to use this model for valuation? (You should be able to develop the inputs for the DDM from Yahoo! Finance or other internet sources. Then compare the "intrinsic" DDM value of each company to its current market price.) Cite the sources of your data and show all work.

Reference no: EM132421978

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