Compute the Coca-Cola's enterprise value in 2019 using the discounted cash flow approach in Chapter 2 and the Coca-Cola's free cash flow in 2019. Assume that (1) the Coca-Cola's short term growth rate from 2020 to 2024 is 4%, (2) the Coca-Cola's long term growth rate after 2024 is 2%, (3) the Coca-Cola's WACC is 7%, and (4) the mid-year rather than end-year discounting is applied. (Submit the number in million dollars.

 

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A 1 2 3 4 5 6 7 25 26 Cash, Cash Equivalents & Short Term Investments Receivables Inventory Prepaid Assets 8 9 10 Total Assets 11 12 13 14 Current Assets 32 33 A B C COCA-COLA BALANCE SHEET 2019 IN MILLION DOLLARS Current Liabilities 11,175 3,971 34 35 Total non-current assets 15 16 17 18 19 COCA-COLA CASH FLOW STATEMENT 2019 20 Cash flows from operating activities 10,471 21 22 Investments in property, plant and equipment 23 Acquisitions, net 24 Other investing activites 27 Net cash used for investing activites 28 Cash flows from investing activities 29 Purchases of investments Sales/Maturities of investments 30 Cash flows from financing activities 31 3,379 1,886 20,411 65,970 86,381 Total liabilities and equity -2,054 -5,542 -4,704 6,973 -56 -3,976 -3,976 -9,004 26,973 Total Non Current Liabilities Net Minority Interest 38,310 Total Liabilities Net Minority Interest 65,283 Stockholders' Equity Minority Interest Total Equity Gross Minority Interest D Coca-Cola share price ($) Coca-Cola number of outstanding shares (millions) 18.981 2,117 21,098 86,381 50 4,314 E Free cash flow in 2019 FCF growth rate until 2024 FCF growth rate after 2024 Weighted average cost of capital FCF Terminal value Total F Enterprise value G H 2019 COCA-COLA VALUATION I 2020 2021 J 2022 K 2023 L 2024 M N O P Q R S A 1 2 3 4 5 6 7 25 26 Cash, Cash Equivalents & Short Term Investments Receivables Inventory Prepaid Assets 8 9 10 Total Assets 11 12 13 14 Current Assets 32 33 A B C COCA-COLA BALANCE SHEET 2019 IN MILLION DOLLARS Current Liabilities 11,175 3,971 34 35 Total non-current assets 15 16 17 18 19 COCA-COLA CASH FLOW STATEMENT 2019 20 Cash flows from operating activities 10,471 21 22 Investments in property, plant and equipment 23 Acquisitions, net 24 Other investing activites 27 Net cash used for investing activites 28 Cash flows from investing activities 29 Purchases of investments Sales/Maturities of investments 30 Cash flows from financing activities 31 3,379 1,886 20,411 65,970 86,381 Total liabilities and equity -2,054 -5,542 -4,704 6,973 -56 -3,976 -3,976 -9,004 26,973 Total Non Current Liabilities Net Minority Interest 38,310 Total Liabilities Net Minority Interest 65,283 Stockholders' Equity Minority Interest Total Equity Gross Minority Interest D Coca-Cola share price ($) Coca-Cola number of outstanding shares (millions) 18.981 2,117 21,098 86,381 50 4,314 E Free cash flow in 2019 FCF growth rate until 2024 FCF growth rate after 2024 Weighted average cost of capital FCF Terminal value Total F Enterprise value G H 2019 COCA-COLA VALUATION I 2020 2021 J 2022 K 2023 L 2024 M N O P Q R S

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To compute CocaColas enterprise value using the discounted cash flow approach we need to calculate the present value of its future free cash flows inc... View the full answer