Question: The Coca - Cola Company ( KO ) current price - to - book value as of December 3 1 , 2 0 2 2

The Coca-Cola Company (KO) current price-to-book value as of December 31,2022, is 12.07. Kraft Food ROE today is 37%. The Plowback ratio for KO is 25%. Three years later KO is required by EU Regulators to implement a de-carbonation program on a global scale. Complying with the decarbonization mandate in all countries where KO operates will dramatically change the profitability and dividend payout ratio. The corporate finance department has calculated that the dividend payout ratio will decline to 50% and the ROE will decrease to 20%. KO has determined market required rate of return on equity is 13.5%.
What is the EPS and dividend growth in years 2-7?
What is the calculated stock price? Why does the plowback ratio play a pivot role?

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