1) By using the financial statements of company which is assigned to you for the last three years (2017, 2018, and 2019):

a) Make the financial planning and forecast the financial statements (balance sheet, income statement, cash flow statement) for the next three years by using the percentage of sales method and by making the necessary assumptions (for interest rates on loans; growth rates, tax rates etc).

b) Find the external funds needed.

c) Estimate how sensitive the external funds needed to changes in your growth rate assumption.

2) If the weighted average cost of capital is 10%, find the value of the company by using the actual and forecasted financial statements that you prepared in question 1.

a) Prepare the free cash flow table for the years 2020-2022.

b) Value the company using a discounted cash flow model.

3) In a separate sheet in a textbox (OR you may submit a word file) write down your comments (in your own words) about the company financials and the industry to which your company belongs. You may elaborate your findings considering economic conditions and expectations. (Providing reference is highly encouraged.)

company: Coca Cola