For this problem, use the following Cash Flow Statement for Coca Cola for year 2022.All numbers are in millions.a) What was the Total Payout Rate for Coca Cola in 2022?b) Coca Cola had 4,3 billion shares outstanding at the end of 2022. What is Coca Cola’s EPS? Assuming Coca Cola’s EPS in 2023 will be 5% higher, estimate Coca Cola’s EPS for 2023. c) Assume that from 2023 onwards, the Total Payout Rate for Coca Cola stays constant at the level you computed in part (a), and its earnings grow at the rate of 3% a year. If the equity cost of capital is 8%, what should be the price per share of Coca Cola at the beginning of 2023? Year Ended December 31,Operating ActivitiesConsolidated net incomeDepreciation and amortizationStock-based compensation expenseDeferred income taxesEquity (income) loss-net of dividendsForeign currency adjustmentsSignificant (gains) losses - netOther operating chargesOther itemsTHE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)Net change in operating assets and liabilitiesNet Cash Provided by Operating ActivitiesInvesting ActivitiesPurchases of investmentsProceeds from disposals of investmentsAcquisitions of businesses, equity method investments and nonmarketable securitiesProceeds from disposals of businesses, equity method investments and nonmarketable securitiesPurchases of property, plant and equipmentProceeds from disposals of property, plant and equipmentCollateral (paid) received associated with hedging activities - netOther investing activitiesNet Cash Provided by (Used in) Investing ActivitiesFinancing ActivitiesIssuances of debtPayments of debtIssuances of stockPurchases of stock for treasuryDividendsOther financing activitiesNet Cash Provided by (used in) Financing ActivitiesEffect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash andRestricted Cash EquivalentsCash, Cash Equivalents, Restricted Cash and Restricted Cash EquivalentsNet increase (decrease) in cash, cash equivalents, restricted cash and restricted cashequivalents during the yearCash, cash equivalents, restricted cash and restricted cash equivalents at beginning of yearCash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of YearLess: Restricted cash and restricted cash equivalents at end of yearCash and Cash Equivalents at End of Year$$20229,571 $1,260356(122)(838)203(129)1,086236(605)11,018(3,751)4,771(73)458(1,484)75(1,465)706(763)3,972(4,930)837(1,418)(7,616)(1,095)(10,250)(205)(200)10,0259,8253069,519 $

The payout ratio or Dividend payout ratio is a measure that states the percentage of income that is…

For this problem, use the following Cash Flow Statement for Coca Cola for year 2022. All numbers are in millions .a) What was the Total Payout Rate for Coca Cola in 2022? b) Coca Cola had 4,3 billion shares outstanding at the end of 2022. What is Coca Cola’s EPS? Assuming Coca Cola’s EPS in 2023 will be 5% higher, estimate Coca Cola’s EPS for 2023 . c) Assume that from 2023 onwards, the Total Payout Rate for Coca Cola stays constant at the level you computed in part (a), and its earnings grow at the rate of 3% a year. If the equity cost of capital is 8%, what should be the price per share of Coca Cola at the beginning of 2023?

For this problem, use the following Cash Flow Statement for Coca Cola for year 2022. All numbers are in millions .a) What was the Total Payout Rate for Coca Cola in 2022? b) Coca Cola had 4,3 billion shares outstanding at the end of 2022. What is Coca Cola’s EPS? Assuming Coca Cola’s EPS in 2023 will be 5% higher, estimate Coca Cola’s EPS for 2023 . c) Assume that from 2023 onwards, the Total Payout Rate for Coca Cola stays constant at the level you computed in part (a), and its earnings grow at the rate of 3% a year. If the equity cost of capital is 8%, what should be the price per share of Coca Cola at the beginning of 2023?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.9E

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