The Coca-Cola Company (ticker: KO), along with its North American anchor bottler Coca-Cola Refreshments, is considering...

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The Coca-Cola Company (ticker: KO), along with its North American anchor bottler Coca-Cola Refreshments, is considering launching a new product. This new product, Coca-Cola YOU!, will allow customers to customize the flavor of their soda at the point of sale. This project requires an initial investment at t=0 of $350 million. KO expects that cash flows in the first year of the project will be $20 million, growing to $30 million in year 2, and growing by 3% per year from year 3 onward. KO pays a corporate tax rate of 35%. The Coca-Cola YOU! platform will also allow the company to collect valuable data on consumer tastes and preferences that will be used in the development of future product offerings. Though this information is likely to prove valuable to the company in the future, it is not to be factored into the capital budgeting decision surrounding whether or not to launch the YOU! product. Assume that the market risk of this project is the same as that for Coca-Cola's overall business. You have been asked by your division manager to determine the NPV of this project. Unfortunately, before your manager left for lunch, you forgot to ask what the appropriate weighted average cost of capital is to use in your analysis. Your manager wants this analysis completed ASAP and you decide you cannot wait. The market values of KO's common stock and preferred stock are $211,296 million and $101 million, respectively. Coca-Cola has total debt outstanding with a face value of $35,665 million and a current market value of $44,910 million. Determine the appropriate weights to use for each source of capital in your WACC calculation. Express your calculated weights in %. KO's common equity weighting is: % (round to two decimal places) KO's preferred equity weighting is: % (round to two decimal places) KO's debt weighting is: % (round to two decimal places) The Coca-Cola Company (ticker: KO), along with its North American anchor bottler Coca-Cola Refreshments, is considering launching a new product. This new product, Coca-Cola YOU!, will allow customers to customize the flavor of their soda at the point of sale. This project requires an initial investment at t=0 of $350 million. KO expects that cash flows in the first year of the project will be $20 million, growing to $30 million in year 2, and growing by 3% per year from year 3 onward. KO pays a corporate tax rate of 35%. The Coca-Cola YOU! platform will also allow the company to collect valuable data on consumer tastes and preferences that will be used in the development of future product offerings. Though this information is likely to prove valuable to the company in the future, it is not to be factored into the capital budgeting decision surrounding whether or not to launch the YOU! product. Assume that the market risk of this project is the same as that for Coca-Cola's overall business. You have been asked by your division manager to determine the NPV of this project. Unfortunately, before your manager left for lunch, you forgot to ask what the appropriate weighted average cost of capital is to use in your analysis. Your manager wants this analysis completed ASAP and you decide you cannot wait. The market values of KO's common stock and preferred stock are $211,296 million and $101 million, respectively. Coca-Cola has total debt outstanding with a face value of $35,665 million and a current market value of $44,910 million. Determine the appropriate weights to use for each source of capital in your WACC calculation. Express your calculated weights in %. KO's common equity weighting is: % (round to two decimal places) KO's preferred equity weighting is: % (round to two decimal places) KO's debt weighting is: % (round to two decimal places)