Review the 1) dividends for the past three years and 2) capital structure of coc
ID: 2411063 • Letter: R
Question
Review the 1) dividends for the past three years and 2) capital structure of coca cola company
What has occurred with your selected company’s dividend payout, dividend yield, and dividend per share over the past three years? Do you have any explanations for what has occurred? Also, has this company had any stock splits or stock repurchases in recent years?
How does your selected company’s dividend payout, dividend yield, and dividend per share compare with other companies in its industry? Has the company’s dividend strategy been similar to other companies in its industry?
Use Excel to plot your selected company’s earnings and dividends over the past three years. Do you notice any patterns? What dividend policies from the background readings best match these patterns?
2017 2016 2015 Dividend per Share 1.48 1.4 1.32 Dividend Yield 3.60% 3.20% 3.10% Dividend Payout $6320 m $6043 m $5741 mExplanation / Answer
Step-1: Dividend and Capital structure table for 3 years:
Particulars
2017
2016
2015
No of Common shares outstanding attributable to COCA-COLA Company
Balance at beginning of year
4288
4324
4366
Treasury stock issued to employees related to stock compensation plans
53
50
44
Purchase of stock of treasury
(82)
(86)
(86)
Balance at the end of year
4259
4288
4324
Dividend Per share
$1.48
$1.4
$1.32
Dividend yield
3.6%
3.2%
3.1%
Dividend Payout
$6320
$6043
$5741
Step-2: Analysis of dividend payout, Dividend yield and dividend rate per share:
1. Dividend Per share:
2.Dividend yield:
3.Dividend Pay-out:
Step-3: Stock option plan and repurchase plan:
Scholes-Merton option-pricing model and is amortized over the vesting period, generally four years. The weighted-average fair value of stock options granted during the past three years and the weighted-average assumptions used in the Black-Scholes.
Stock Repurchase:
Year ending December 31
2017
2016
2015
Number of shares repurchased (in Millions)
82
86
86
Average Price per share
$44.09
$43.62
$41.33
Step-4: Dividend comparisons with other companies in industry:
Step-5: Dividend Policy of COCO-COLA Company:
Particulars
2017
2016
2015
No of Common shares outstanding attributable to COCA-COLA Company
Balance at beginning of year
4288
4324
4366
Treasury stock issued to employees related to stock compensation plans
53
50
44
Purchase of stock of treasury
(82)
(86)
(86)
Balance at the end of year
4259
4288
4324
Dividend Per share
$1.48
$1.4
$1.32
Dividend yield
3.6%
3.2%
3.1%
Dividend Payout
$6320
$6043
$5741
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