Question: You are looking to evaluate Coca Cola (KO) in terms of their capital structure based on the following information. If their ROIC is 16.8%, are

You are looking to evaluate Coca Cola (KO) in terms of their capital structure based on the following information. If their ROIC is 16.8%, are they destroying or creating value for their shareholders? Be sure to first calculate KOs WACC, and then explain your rationale. Risk Free Rate: 3% Market Risk Premium 5.50% Beta: 0.43 Cost of Debt: 2.00% % of Debt: 20% % of Equity: 80% Tax Rate: 21%

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