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Coca-Cola Ltd is currently trading at R34 per share. The firm is expected to earn R3.57 per share this year and to pay a year-end

Coca-Cola Ltd is currently trading at R34 per share. The firm is expected to earn R3.57 per share this year and to pay a year-end dividend of R2.79. Required: a. If investors require an 9.8% return from Coca-Cola, what is the estimated rate of growth implied? % b. If Coca-Cola reinvests earnings in projects with average returns equal to the share's expected rate of return, estimate next year's EPS.R

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