Question
Coca-Cola Amatil (CCA) is one of the largest manufacturers of soft drinks in the Asia-Pacific region and operates in six countries- Australia, new Zealand, Indonesia,
Coca-Cola Amatil (CCA) is one of the largest manufacturers of soft drinks in the Asia-Pacific region and operates in six countries- Australia, new Zealand, Indonesia, Papua New Guinea, Fiji and Samoa. CCA is also listed on the Australian Stock exchange since 1970. Your task is to download CCA's 2017 Annual Report and answer the following questions.
1. Whats is average annual dividend growth rate for CCA between 2013 and 2017? Hint-use information provided in Page 135 in the annual report
2. Do you think CCA will maintain this recent growth rate forever? Justify your answer and if you disagree then also suggest a new dividend growth rate range. Hint- start by reading pages 8-9
3. Suppose the annual dividend growth rate is 5 percent, which will continue into the foreseeable future. What is the Intrinsic Value of CCA's share at 31st December 2018, if you require an annual return of 10 percent ?
4. What was CCA's share price on 31st December 2018?
5. Should you invest in CCA's shares based on 3 and 4 above? Why or why not ?
Please help with the above 5 part question as this assignment is due on 26/04/19 and its 20 marks.
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