Using data from Exhibits 152 and 153, the FCFF and FCFE for CocaCola for 2014 are as

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Using data from Exhibits 15‐2 and 15‐3, the FCFF and FCFE for Coca‐Cola for 2014 are as follows (all $ values in billions):

FCFF=$10.615($2.406+0.389)+$0.483x(10.24)=$8.187 FCFE = $10.615-($2.406+0.389) + $4.712 = $12.532

FCFF is generally greater than FCFE; however, in this case, the low interest rate environment encouraged Coke to issue large amounts of debt, which caused FCFE to far exceed FCFF.

Exhibits 15‐2

Exhibits 15‐3

EXHIBIT 15-3 The Statement of Cash Flows for Coca-Cola (all values in 8 millions) Period Ending Consolidated

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Investments Analysis And Management

ISBN: 9781118975589

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Authors: Charles P. Jones, Gerald R. Jensen

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Question Posted: Dec 31, 2023 10:34 AM

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Using data from Exhibits 152 and 153, the FCFF and FCFE for CocaCola for 2014 are as

Question:

FCFF=$10.615–($2.406+0.389)+$0.483x(1−0.24)=$8.187 FCFE = $10.615-($2.406+0.389) + $4.712 = $12.532

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Investments Analysis And Management

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