Selected Financial Ratios for KO Total EPS. DPS Net Income/Sales erEauity Equity 2.0 $4.00 S2.00 396 3.0x Acid Test Ratio 1.0 Income Tax Rate 45% Current Price S65 Beta 2.0 Answer the following three questions using the above data: I. Calculate the required return for KO if the riskfree rate is 4% and the return on the market is 10%? (5 points) 2. Compute the price of KO using the dividend discount model? (10 points) 3. 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 2.57(8 pts)