1. Consider the assets on Coca-Colas balance sheet and answer the following questions: a. Which assets are likely to be assessed closest to market value? Explain.

b. Coca-Cola has net fixed assets of $3,669 million. Can you estimate how much Coca-Cola paid for these assets? Is there any way to know the age of these assets?

c. Coca-Cola seems to have far more invested in current assets than in fixed assets. Is this significant? Explain.

d. In the early 1980s, Coca-Cola sold off its bottling operations, and the bot- tlers became independent companies. How would this action have impacted the assets on Coca-Colas balance sheet? (The manufacturing plants are most likely to be part of the bottling operations.)

2. Examine the liabilities on Coca-Colas balance sheet.

a. How much interest-bearing debt does Coca-Cola have outstanding? (You can assume that other short-term liabilities represent sundry payables, and other long-term liabilities represent health care and pension obligations.)

b. How much did Coca-Cola obtain in equity capital when it issued stock originally to the financial markets?

c. Is there any significance to the fact that the retained earnings amount is much larger than the original paid-in capital?

d. The market value of Coca-Colas equity is $140 billion. What is the book value of equity in Coca-Cola? Why is there such a large difference between the market value of equity and the book value of equity?