Experience in how to complete an Accretion Dilution. The company is Coca Cola.
Determine the maximum premium Coca-Cola could pay for Canada Dry before the deal would no longer be accretive based on the data.
Fill in Coca-Cola's current stock price on the DILUTION ANALYSIS worksheet.
Fill in Coca-Cola (NYSE: KO) shares outstanding on the DILUTION ANALYSIS worksheet.
Exhibit 1
Coca-Cola
Summary of assumptions for Acquisition (MM)
| Buyer |
|
| Coca-Cola |
|
| Coca-Cola Stock Price - Current |
$0.00 |
| Coca-Cola Shares Outstanding |
0.0 |
| Coca-Coal Revenues |
$47,915.00 |
| Coca-Cola Net Income |
$8,716.00 |
| Borrowing Cost |
5.00% |
|
|
| Target |
|
| Canada Dry |
|
| Revenues |
$6,000.00 |
| EBITDA |
$1,510.00 |
| EBIT |
$1,450.00 |
| Book Value |
$2,100.00 |
| Total Debt |
$1,300.00 |
| Share Price |
$56.00 |
| Shares Outstanding |
166 |
|
|
| Transactioon |
|
| Premium to Target Share Price |
0% |
| Purchase Price |
$9,296.0 |
| Consideration - Cash versus Stock |
0% |
| Synergies Assumed |
500.0 |
| Effective Corporate Tax Rate |
35.0% |