Question
Given the following financial and market data for KO, Coca-Cola: Price Forward Dividend Treasury Rate Expected market return Coca cola Beta $46 $1.56 2.8% 12%
Given the following financial and market data for KO, Coca-Cola:
| Price | Forward Dividend | Treasury Rate | Expected market return | Coca cola Beta |
| $46 | $1.56 | 2.8% | 12% | 0.6 |
a) What dividend growth rate is the market expecting for Coca-Cola?
b)If the future dividend growth rate is Coca-Cola was 6%, should you buy or sell Coca-Cola's stock? Explain.
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Financial Crisis Causes Context And Consequences
Authors: Adrian Buckley
1st Edition
1553395417, 9781553395416
