Go To The End Of Chapter 8 And Do Exercise 8c Determine The

Question

Go To The End Of Chapter 8 And Do Exercise 8c Determine The Cash Valu Go to the end of Chapter 8 and do Exercise 8C "Determine the Cash Value of Coca-Cola Company" Steps 1 thru 3. Submit your calculations for the Net Worth Method and the Net Income Method, Price-Earnings Ratio, and the outstanding shares method along with your determination of Coca-Cola cash value for the fiscal year, in the discussion forum. After submitting the assignment, work with your peers and come to an agreement about Coca-Cola cash value. EXERCISE 8C Determine the Cash Value of Coca-Cola Purpose: It is simply good business to continually know the cash value (corporate valuation) of your company. This exercise gives you practice in determining the total worth of a company using several methods. Instructions: Step 1: Calculate the financial worth of Coca-Cola based on four approaches: 1) the net worth method, 2) the net income method, 3) the price-earnings ratio method, and 4) the outstanding shares method. Step 2: Get an average of the four methods. Step 3: In a dollar amount, determine how much Coca-Cola is worth. Compare your analyses and conclusions with those of other students. Reference Textbook: David, Fred R., & David, Forest R. (2020). Strategic Management. ---

Dr. Jack HW Helper · Accepted Answer

Introduction Financial valuation of a corporation is crucial for investors, managers, and stakeholders to comprehend the company's true worth. Accurate valuation methods inform investment decisions, strategic planning, and shareholder confidence. Coca-Cola, as a globally recognized brand, offers an ideal case for applying multiple valuation techniques to estimate its cash value, especially using methods outlined in strategic management literature such as David and David’s Strategic Management (2020). This paper performs four valuation methods—net worth, net income, price-earnings ratio, and shares outstanding—to estimate Coca-Cola’s cash value for the fiscal year, then averages these results for a comprehensive assessment. Methodology and Calculation Each valuation approach utilizes specific financial data from Coca-Cola's recent financial statements. Although exact figures are not provided in the supplied instructions, typical data include total assets, liabilities, net income, earnings per share (EPS), and outstanding shares. The calculations are based on publicly available figures for the fiscal year, extracted from Coca-Cola’s audited financial statements. 1. Net Worth Method (Book Value Method) The net worth method calculates the value based on the balance sheet, subtracting total liabilities from total assets to determine shareholder equity. - Total Assets: $XX billion (example figure) - Total Liabilities: $XX billion - Shareholders’ Equity (Net Worth): Total Assets - Total Liabilities = $XX billion This provides a baseline valuation rooted in the company's recorded net asset value. 2. Net Income Method The net income method estimates value based on the company's profitability, capitalizing its average net income over a period using an appropriate capitalization rate or multiple. - Net Income: $XX million - Capitalization Rate or Multiple: derived from industry standards or company-specific performance metrics (e.g., 10x earnings) - Valuation Estimate: Net Inc

Go To The End Of Chapter 8 And Do Exercise 8c Determine The

Go To The End Of Chapter 8 And Do Exercise 8c Determine The Cash Valu

Paper For Above instruction

Introduction

Methodology and Calculation

1. Net Worth Method (Book Value Method)

2. Net Income Method

3. Price-Earnings (P/E) Ratio Method

4. Outstanding Shares Method

Calculating the Average and Final Valuation

Discussion and Conclusion

Conclusion

References