Module Case Analysis Section Questions
WACC = [wd*Rd*(1-T)] + [we*Re] +[wp*Rp]
1. Access the current data and information on the Coca Cola Co (KO) from FINRA
Click "Company Information" and enter the ticker symbol KO to access information on Coca Cola. Use this site wherever you see a reference to FINRA* below.
2. Use the information from FINRA to complete Table 1 (Attached) which includes the guidelines to calculate the wacc and its components.
Table 1. Cost of Capital (wacc) and Components (Rd, Re, Rp)
3. Use the data and information from the provided resource FINRA* KO page to get the current Tax Rate (T). Enter the Tax rate as a decimal not as a percentage when calculating wacc in Table 2 (Attached) below:
4. Use the data collected in Table 1 and Table 2 to calculate the WACC for Coca Cola Co. WACC = [wd*Rd*(1-T)] + [we*Re] +[wp*Rp]
For Re, use the average of the three Re values you calculated using the different methods.
5. Discuss how you would adjust the wacc you calculated in #4 above to use it to address the needs of different levels of risk in different projects and divisions in the Coca Cola Company. In your answer explain whether one single wacc estimate should be used for different projects or if different ones should be used based on level of risk.
Attachment:- Assignment File.rar