Draft the spread sheet "Coca-Cola Valuation" to derive Coca-Cola's per share valuation using the indicated 5-year horizon and related forecast data.

a.Forecast sales based on the sales growth forecast assumption.

b.Derive the "net operating asset" side of the balance sheet.

c.Assign the value of net total assets to net capital, and then partition net capital to net debt and equity.

d.Derive forecasted net income and calculate FCF for the Coca-Cola and which is the appropriate rate for discounting.

e.Aggregate the forecasted components to derive the value of the firm.

f.Derive residual income model.

(15 Marks)

Question 2:Derive a per-share value estimate of Coca-Cola as of January 2011, using the data provided in the exhibits. What are the major steps in the valuation process?

(03 Marks)

Question 3:What key assumptions are we making in this process? Among several, consider summary versus detailed forecasting, the chosen horizon, and implicit financing assumptions.

(03 Marks)

Question 4:Multinational companies must recognize that foreign-exchange risk affects not only cash flows but also investment opportunities. Give valuable opinion as per requirement.