The fact is, in order to maximize shareholder wealth in any company, there must be a steady increase in profits for every share of Coca Cola common stock on the market. Therefore, an effective manager will focus more on ways to generate more profits within the company, for Coca Cola, the company makes money by maintaining a strong brand and producing a consumer product that is very enjoyable and easily accessible to customers, because of its high demand in the beverage sector. Therefore, to fully maximize shareholder value, the company must sustain and prolong its brand and products. In most cases, according to Brealey and Myers (2000), effective managers are aware of setting long-term payout ratio targets (depending on their profits), so managers often facilitate dividend payments by moving partly towards the target payout each year. They also revisit and study past earnings to try to set future dates for paying dividends to shareholders. Investors are generally aware of this process and know that dividend increases often represent a sign of optimism from management.