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For the company Coca-cola: a. calculate Economic Value Added (EVA) over the most recent annual period....

For the company Coca-cola:

a. calculate Economic Value Added (EVA) over the most recent annual period. Assume a 10 percent cost of capital and explain your results.

b. estimate the firm’s expected growth rate using the Gordon Growth Model and an expected return on the company’s stock of 10%. Compare these results with a close competitor.

c. estimate the firms’ weighted average cost of capital (WACC) after taxes. Use the capital asset pricing model (CAPM) to estimate the cost of common stock equity. Use the yield-to-maturity on the firms’ outstanding debt or an industry average to estimate the cost of debt and a corporate tax rate of 21 percent. Compare and contrast your result with that of a close competitor or industry average.

Market Summary > The Coca-Cola Co

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NYSE: KO

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Open	47.41
High	48.30
Low	47.40
Mkt cap	205.58B
P/E ratio	30.71

Div yield	3.32%
Prev close	47.40
52-wk high	50.84
52-wk low	41.45

Not sure if this is what you are looking for.

I'm not sure if I am answering your question correctly, can I assume the investment made is $1000

Expert Solution

jeff jeffy answered 2 years ago

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