Busn 379 Course Project for Coca Cola

What was the firm’s historical dividend growth rate using the point-to-point method? Using the linear regression method?

The current year is 1979, so from Exhibit 3 the 1980 dividend is forecasted to be $1.70, and the stock price in 1979 is $22.50. This gives a dividend yield of 7.56%, which is added to g. There are four ways to solve for g:

23) Danroy Inc has announced a $5 dividend. If Danroy's last price while trading cum-dividend is $65, what should its first ex-dividend price be (assuming perfect capital markets)?

5. Hilltop, Inc. earns $.12 in profit on every $1 of sales. The firm pays out 55 percent of its profits to its shareholders. The firm has $.75 in assets for every $1 of sales. What is the internal growth rate? B. 7.76 percent

The Dividend Discount Model template is divided into Historical growth and Sustainable growth. The Historical growth contains dividends from 5th of March, 2009 to 29th November, 2013. I got an Average growth rate of 11.51% from the average of the Annual Dividend from the 5 years period. Expected dividend was 0.4907 and year end price from Wall street journal was $24.21. The Expected rate of return from the Historical growth with the information collected was calculated to be 13.54%.

This is an opportunity to demonstrate your competence in how well you have learned about a specific company and its underlying business drivers while demonstrating your proficiency in applying the financial decision making concepts covered in this course.

In order to figure the growth rate, you must find the historical data of the stock chosen. The average rate from the four quarters of the year 2006 for Safeway, Inc (SWY) produces the present value. The average rate for the year 2011 produces the future value. When you subtract the present value year (2006) from the future value year (2011) you get the number of years that is inserted into the formula. To get an accurate measurement of the growth, a period of four-to-five years will suffice. The following information is the result of these values inserted into the Excel program rate function.

The annual Wal-Mart dividend for year 2011 was $1.21 and the constant perpetual growth dividend was estimated at 5.0%. By using the given current stock price $53.45, the investor’s

?Total CFs ? ? ?PVs of CFs when discounted at Estimated rs ? ? ?Calculated Price = P0 = Sum of PVs = $0.00A positive number will be here when dividends are estimated. The Calculated Pricewill equal the Actual Market Price once the correct rs has been found.Sally told you that the growth rates in the template were just put in as a trial, andthat you mustreplace them with the analysts ' forecasted rates to get the correct forecasteddividends and thenthe estimated TV. She also notes that the estimated value for rs, at the top of thetemplate, is also just a guess, and you must replace it with a value that will cause the CalculatedPrice shown atthe bottom to equal the Actual Market Price. She suggests that, after you have putin the correctdividends, you can manually calculate the price, using a series of guesses as to theEstimated rs. The value of rs that causes the calculated price to equal the actual price is thecorrect one. Shenotes, though, that this trial-and-error process would be quite tedious, and that thecorrect

21. The current year 's dividend (D0) for a share of common stock is $2 and the current price (P0) of the stock is $30. Dividends are expected to grow at 5% forever. What is the rate of return for this stock? [Ans: 12 %]

Coca Cola being American favorite soda company drinks for years. The company it self has own over dozen of brands in the past years like diet coke, sprite, Fanta, fuze, Mello Yello, Dasani, and many more. Embry Investment Group (EIG) are interested in investing in a company that would be a great beneficial to them. In this report will show why EIG should invest Coca Cola and how it could be a successful business if the EIG were to invest in Coca Cola. Finally, the report will end in a conclusion based from the information provided and formulate a recommendation of why the EIG should invest in this company.

1. In the year just ended, the Madison Badger Memorabilia Company, Inc., had sales of $465,000. It expects sales to grow by 10% in the coming year, by 8% the next year, and by 6% per year perpetually after that. The company has neither capital expenditures nor depreciation. There is no working capital requirement. EBIT is 20% of sales, and the company’s tax rate is 30%. MBMCI has $90,000 in cash, and $60,000 in debt. It has 20,000 shares of common stock outstanding, and has a weighted average cost of capital of 11%. Estimate the price of a share of MBMCI stock today.

On average, the dividend return per share is 22.61c. This is on average for every dividend distribution from

18. Assume that you purchased 200 shares of Super Performing mutual fund at a net asset value of $21 per share. During the year you received dividend income distributions of $1.50 per share and capital gains distributions of $2.85 per share. At the end of the year the shares had a net asset value of $23 per share. What was your rate of return on this investment?

Coca-Cola is one of the fastest growing products in the world. The Coca-Cola company has expanded to many different countries, helping those along the way. It was rough for the company in the beginning, but now they are around the top in selling their product globally. Globally, the company has been a success and is still finding new ways to build around that success. Now I talk about how the company got originated, why they went global and expanded around the world, and their success while expanding.