The paper 'Value of the Shares of Coca Cola Company" is a good example of a business case study. Coca-cola was started in 1886 and fully incorporated in 1972 by candler. It is one of the leading manufacture and distributor of a soft drink coke. Currently, coca-cola has grown spread and has improved its products with time, with most current, the direct coke popular known for its vitamin content. Coca-cola has a variety of brands currently in the market like a fresco, Fanta, diet coke, Dasani water, and many more. Indeed coca-cola is known for its big market share in over 200 countries in the world. Investors may admire the performance of the coca-cola company and its advanced marketing network.
They may be interested in their own shares and also shareholders would want to how much divide they expect at the end of an accounting period. This may necessitate the valuation of the company’ s shares to know its worth. It is therefore the responsibility of the management to give correct information when it comes to published accounts as this becomes the source of information to base when an investor is interested in a company.
Other parties interested include the suppliers, the lenders and many others. THESIS STATEMENT The research paper deals with the determination of the value of the shares of Coca Cola Company. The research has been built on the platform of the previous assignment of the coca-cola corporation and will wholly rely on the figures given in the first assignment report. The objective is to determine the value of the share using reports given by the first assignment which was based on the deponent model of analysis. The report discusses the present value of the future cash flows of the company to determine its worth by using the divided yield model.
The report will discuss sensitivity analysis and WACC, and how they affect the performance of the company. The report will discuss how coca-cola can use WACC to measure its creditworthiness and how the management can use sensitivity analysis to measure investment risks and uncertainties as a tool.
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