Substitute reasonable numbers for Coca-Cola (see the suggestions below) into Eq. (14.21). (a) What value does the

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Substitute reasonable numbers for Coca-Cola (see the suggestions below) into Eq. (14.21).
(a) What value does the equation provide?
(b) How do you explain the differences between the formula result and the spreadsheet result?
(c) Suppose that Coke is able to increase its sales growth rate by an extra 1 % every year forever, by accepting a decline in its rate of return. Use Eq. (14.21) to estimate how much return it could give up while maintaining the same value.
Suggested parameter values:
Substitute reasonable numbers for Coca-Cola (see the suggestions below) into
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Related Book For  book-img-for-question

Financial Theory and Corporate Policy

ISBN: 978-0321127211

4th edition

Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri

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