a) Compute Coca-Cola's free cash flow in 2020 using the cash flow statement. Assume that only "Purchase of PPE" item in the investing activities section is operating-related and the net interest is zero, i.e., there is no tax shield.

b) Compute Coca-Cola's enterprise value using the discounted cash flow approach and the free cash flow for 2020. Assume that Coca-Cola's short term growth rate from 2021 to 2025 is 14%, Coca-Cola's long term growth rate after 2025 is 7%, Coca-Cola's WACC is 12.5%, and the mid-year rather than end-year discounting is applied.

c) Using Excel Solver, compute the Coca-Cola's implied cost of capital that equates the enterprise value in 2020 using the discounted cash flow approach with its counterpart using the efficient market approach. Assume that Coca-Cola's short term growth rate from 2021 to 2025 is 14%, Coca-Cola's long term growth rate after 2025 is 7%, and the mid-year rather than end-year discounting is applied.

COCA-COLA BALANCE SHEET 2020 IN MILLION DOLLARS Cash, Cash Equivalents & Short Term Investments 10,914 Current Liabilities 14,601 Receivables 3,144 Total Non Current Liabilities Net Minority Interest 51,411 Inventory 3.266 Total Liabilities Net Minority Interest 66.012 Prepaid Assets 1.916 Current Assets 19,240 Stockholders' Equity 19,299 Minority Interest 1,985 Total non-current assets 68.056 Total Equity Gross Minority Interest 21,284 Total Assets 87,296 Total liabilities and equity 87,296 Coca-Cola share price ($) Coca-Cola number of outstanding shares (millions) 56 4,320 COCA-COLA CASH FLOW STATEMENT 2020 Cash Flow from Continuing Operating Activities 9,844 Purchase of PPE Sale of PPE Net Business Purchase And Sale Net Investment Purchase And Sale Net Other Investing Changes Cash Flow from Continuing Investing Activities -1,177 189 -863 252 122 -1,477 Cash Flow from Continuing Financing Activities -8,070 COCA-COLA BALANCE SHEET 2020 IN MILLION DOLLARS Cash, Cash Equivalents & Short Term Investments 10,914 Current Liabilities 14,601 Receivables 3,144 Total Non Current Liabilities Net Minority Interest 51,411 Inventory 3.266 Total Liabilities Net Minority Interest 66.012 Prepaid Assets 1.916 Current Assets 19,240 Stockholders' Equity 19,299 Minority Interest 1,985 Total non-current assets 68.056 Total Equity Gross Minority Interest 21,284 Total Assets 87,296 Total liabilities and equity 87,296 Coca-Cola share price ($) Coca-Cola number of outstanding shares (millions) 56 4,320 COCA-COLA CASH FLOW STATEMENT 2020 Cash Flow from Continuing Operating Activities 9,844 Purchase of PPE Sale of PPE Net Business Purchase And Sale Net Investment Purchase And Sale Net Other Investing Changes Cash Flow from Continuing Investing Activities -1,177 189 -863 252 122 -1,477 Cash Flow from Continuing Financing Activities -8,070