Coca Cola (Company) paid an annual dividend of $1.64 per share and generated earnings per share of $1.79 in 2020. Coke stock was trading at $50.00 per share. 1) what is the sustainable growth rate of the firm in 2020 given an annual ROE of 36.5%?
Coca Cola (Company) paid an annual dividend of $1.64 per share and generated earnings per share of $1.79 in 2020. Coke stock was trading at $50.00 per share. 1) what is the sustainable growth rate of the firm in 2020 given an annual ROE of 36.5%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Coca Cola (Company) paid an annual dividend of $1.64 per share and generated earnings per share of $1.79 in 2020. Coke stock was trading at $50.00 per share.
1) what is the sustainable growth rate of the firm in 2020 given an annual
2) discuss the reasonableness of Coke’s dividend policy and note whether the firm appears to follow the stable (growth) theory of dividends or the residual theory? Why?
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