Question: I did step one. i need help with Step 2 and 3 please Step 1: Calculate the financial worth of Coca-Cola based on four approaches:
I did step one. i need help with Step 2 and 3 please
Step 1: Calculate the financial worth of Coca-Cola based on four approaches:
- the net worth method
Net Worth = Net Assets Debts
Assets = 5629516
Debts = 4109986
Net Worth = 5629516 4109986
Net Worth = 1519530
- the net income method,
Net Income = Total Revenue Total Expenses
Total Revenue = 7421768
Total Expenses = 6574856 = (TE = Cost of Sales + Interest + Tax (=6032197+ 7421768+ 459131))
Net Income = 7421768 6574856
Net Income = 846912
- the price-earnings ration method, and
Price Earning Ratio Formula = Share Price/Earning per share
Share Price = 4.04 (Total Equity/number of shares (1455062000/359901744))
Earning per share = 1.87 (Net Income per share dividend per share (3.91-2.04))
Price Earning Ratio = 4.04/1.87
Price Earning Ratio = 2.16
- the outstanding shares method.
Outstanding Share = Issued Stock Treasury Stock
Total Issued Stock = 359,901,744
Treasury Stock = 1,38,856,786
Outstanding Shares = 359,901,744 - 1,38,856,786
Outstanding Shares = 221,044,958.
Step 2: Get an average of the four methods. In a dollar amount, how much is Coca-Cola worth?
Step 3: Compare your analyses and conclusions with those of other students.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
