Estimate the value of a share of coca-cola stock

Assignment Help Financial Management
Reference no: EM13935449

You notice that PepsiCo (PEP) has a stock price of $72.62 and EPS of $3.80. Its competitor, the Coca-Cola Company (KO), has EPS of $1.89. Estimate the value of a share of Coca-Cola stock using only this data.

Reference no: EM13935449

Questions Cloud

Bid for each share of van buren common stock : Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5% and the market risk premium is 6%. Van Buren currently expects to pay a year-end dividend of $3.00 a share (D1 = $3.00). If Harris..
The transfer of cost associated with units completed : The transfer of cost associated with units completed in both departments.
Significant role in organisational effectiveness : Strategic Human Resource Management (SHRM) plays a significant role in organisational effectiveness (Gallup Consulting, 2010; Pfeffer & Veiga, 1999).
About the discounted payback : Project K costs $35,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 9%. What is the project's discounted payback?
Estimate the value of a share of coca-cola stock : You notice that PepsiCo (PEP) has a stock price of $72.62 and EPS of $3.80. Its competitor, the Coca-Cola Company (KO), has EPS of $1.89. Estimate the value of a share of Coca-Cola stock using only this data.
Determine the n- and t-components of the force : Determine the n- and t-components of the force F which is exerted by the rod AB on the crank OA.
Process of collecting and assembling your portfolio : What are some of the supplies you need to begin the process of collecting and assembling your portfolio? Please explain
Biotechnology firm that is about to announce the results : Theorem Medical, is a biotechnology firm that is about to announce the results of its clinical trials of a potential new cancer drug. If the trials were successful, Theorem stock will be worth $65 per share. Based on the current share price, what sor..
Price per share if its equity cost of capital : Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?

Reviews

Write a Review

Financial Management Questions & Answers

  What is its current share price

Solinux, Inc., is a young start-up company and will not pay dividends on its stock for the next 8 years, since the firm needs to slow back its earnings to fuel growth. The company will then pay a $2.22 per share dividend in year 9 and will increase t..

  Recoup the original additional investment in working capital

Targaryen Aeronautics is exploring the possibility of making a significant purchase of a new alternative aircraft technology to add to their current fleet - a dragon. The purchase price of the dragon is expected to be $4,000,000 with additional shipp..

  What is the cost of common from reinvested earnings

Orange Logistic is thinking of opening a new warehouse, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new warehouse. No new working capi..

  What is the present value of her lottery winnings

1) If the APR is 15 percent, what is the effective annual interest rate (EAR), in percent, if the compounding is monthly? Sharon Kabana won the state lottery and will receive a payment of $89,729.45 at the end of each year for the next 20 years. If t..

  The current cash flows as a dividend to its shareholders

The firm you are CEO if has a current period cash flow of 1.75 million and pays no dividend. The present value of the company’s future cash flows is $25.0 million. Suppose you and the board announce a plan to pay out 40 percent of the current cash fl..

  Compute mrs yanks federal income tax

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William. From the following information, compute Mrs. Yank's federal income tax (including any AMT) and the amount due with her Form 1040 or the refund she should receiv..

  Receive from his investment cash flows

Chuck Brown will receive from his investment cash flows of $3,145, $3,500, and $3,810 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..

  What is the sensitivity of the NPV to each of these variable

McGilla Golf has decided to sell a new line of golf clubs and would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $900 per set and have a variable cost of $500..

  What is the bank discount yield and bond equivalent yield

A Treasury bill with 85 days to maturity is quoted at 97.630. What is the bank discount yield, the bond equivalent yield, and the effective annual return?

  Calculate the net present value and benefit cost ratio

The parks department is considering building a new pool. If the project is approved, the pool will be constructed in 2016 for a total cost of $400,000 to be paid from the cash reserves of the department. calculate the Net Present Value (NPV) and Bene..

  Call option today considering two-period binomial

Counseder a stock worth $30 that can go up or down by 10%. the risk- free rate is 6% the exercise price is $30. find the value of the call option today considering one period binomial? Find the value of the call option today considering a two-period ..

  What would be the financial institutions net savings

An interest rate cap of 7% with a notational value of $18.9 million is available for a premium of 0.58%. The same notational value 3% floor is available for a premium of 0.64%. If current interest rates are at 8%, what would be the a financial instit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd