1) Review Coke Bottling Appendix 1 or Appendix 2 if needed and answer the following: What is type of Dividend payout theory do you think Coke Bottling follows What is their dividend payout ratio from 2010-2014 What is the retained earnings for 2014 2) If Coke bottling stock price is $112, and coke will like to maintain its dividend payout ratio same as 2014. Coke will like to Its capital budget is forecasted at $20M, and it is committed to maintaining a the same dividend per share as 2014. It finances with debt and common equity, but it wants to avoid issuing any new common stock during the coming year. Given these constraints, what percentage of the capital budget must be financed with debt? 3) Suppose the spot exchange rate between U.S. dollars and Indian Rupee is $ 1.00 = Rs 63.58 Look at the graph below. What is the long term trajectory of the exchange rate. Which is getting weaker? If a US Corporation sold a $1M contract in 2006 spot rate of Rs45 payable in 2015, What was the gain/loss due to exchange rate change. What could the corporation have done to minimize the exchange rate impact if any? INR per 1 USD