Question
The Coca-Cola Company (KO) has a P/E ratio of 19.78 and a dividend payout ratio of 69.4%. If its equity cost of capital is 9%,
The Coca-Cola Company (KO) has a P/E ratio of 19.78 and a dividend payout ratio of 69.4%. If its equity cost of capital is 9%, estimate the growth rate that is consistent with Coca-Colas P/E ratio.
| a) 5.49% | ||
| b) 3.51% | ||
| c) 9.18% | ||
| d) 6.27% |
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Entrepreneurial Finance And Accounting For High-Tech Companies
Authors: Frank J Fabozzi
1st Edition
0262336901, 9780262336901
