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Selected Financial Ratios for KO EPS-4.00 DPS-2.00 Net Income/Sales-3% Total Asset Turnover-3.0X Asset/Equity-2.0 Acid Test Ratio-1.0 Income Tax Rate-45% Current Price-$65 Beta-2.0 Compute the price

Selected Financial Ratios for KO

EPS-4.00

DPS-2.00

Net Income/Sales-3%

Total Asset Turnover-3.0X

Asset/Equity-2.0

Acid Test Ratio-1.0

Income Tax Rate-45%

Current Price-$65

Beta-2.0

Compute the price of KO using the dividend discount model?

What will happen to the price of KO if the total asset turnover increases to 4X, net profit margin increases to 4% and beta increase to 2.5?

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