Discuss Pros and Cons of an obesity campaign for a soft drink company (general issues of perception and purpose) - develop business case and social case 2. Discuss specific challenges for Coca Cola a. Estimate a suggested discount rate to compute NPV and PI for an obesity campaign using actual company WACC (see ValuePro) - would you use corporate level WACC - why/why not? b. Assess the company's ability to invest in an obesity campaign looking at beta, debt/equity ratio, and cash flows of company - how would the company raise capital; what would be the mix of debt/equity? c. Review changes in stock prices over the past 18 months since May 2013. Evaluate risk and return for an investor in Coca Cola - has it been good or bad? Why? *the paper will be checked for plagiarism
Text book is Corporate finance-Core principles & applications. by Ross, Westerfield, Jaffe and Jordan