In early 2006, the 2,369 million outstanding shares of the Coca Cola Company traded at $48.91 each. The price-to-book ratio was 6.3 and the forward P/E was 19.3 based on analysts' consensus EPS forecast for 2007. An analyst extracted the following numbers from Coke's financial statements (in millions of dollars):

a. Calculate the core operating profit margin and asset turnover for each year 2002-2005.
b. Calculate the average sales growth rate over the years 2003-2005.
c. The firm reported common share holders' equity at the end of 2005 of $16,945 million, along with $1,010 billion in net financial obligations. Using the numbers you calculated, estimate Coke's enterprise value at the end of 2005 and also the value per share. Use a required return for operations of 10 percent. Box 14.3 will helpyou.

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2004 21,742 4.870 17,18416,563 2003 20,857 4,443 15,735 2002 19,564 4,324 14,932 2005 Sales Core operating income, after tax Net operating assets (average for year) 23,104 4,944