Module Learning Objectives:

The objective is to apply the concepts learned in the course to a publicly traded company.

Assignment: Company analysis: Coca$-$Cola $($KO$)$

Complete a comprehensive financial analysis of Coca$-$Cola, including a review of the company's financial performance and capital structure, including estimates for cost of debt, cost of equity, and weighted average cost of capital. As part of the analysis, compare the company's existing capital structure to your estimated optimal capital structure and calculate the WACC of that capital structure. Finally, discuss the company's dividend and share buyback policies historically and prospectively.

It is not the point of this analysis to develop a 'buy' or 'sell' recommendation. However, the report must include a $12-$month projection of value $($for the company, calculated using at least two methods $($one must be a discounted cash flow method based on a pro$-$forma balance sheet, income statement, and statement of cash flows, and the other may be a relative value method$).$

The paper should be a minimum of $15$ pages, excluding the cover page and appendices. Please see the sample paper for some guidance on what's expected. Pro$-$forma projections may be submitted in spreadsheet format $(.$xls$,$ xlsx$,$ etc.$).$

Points to Hit

review of the company's financial performance

its capital structure

estimates for the cost of debt

cost of equity

weighted average cost of capital

compare the company's existing capital structure to your estimated optimal capital structure

include the calculation of what the WACC of that ideal capital structure would be

discuss the company's dividend and share buyback policies

historically and prospectively.

include a $12-$month projection of value

discounted cash flow method based on a pro$-$forma balance sheet, income statement, and statement of cash flows

relative value method