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 KO's WACC, and then explain your rationale.

Risk Free Rate: 3%

Market Risk Premium 7.00%

Beta: 0.43

Cost of Debt: 2.00%

% of Debt: 30%

% of Equity: 70%

Tax Rate: 29%

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