Question
Coca-Cola Ltd is currently trading at R37 per share. The firm is expected to earn R3. 48 per share this year and to pay a
Coca-Cola Ltd is currently trading at R37 per share. The firm is expected to earn R3. 48 per share this year and to pay a year-end dividend of R2. 55.
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 share's expected return, estimate next year's EPS.
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad Mcevoy
1st Edition
1934432040, 978-1934432044
