1) How many Coca Cola Company (KO) shares are outstanding? (1 mark) 2) What is the current market capitalisation of the Coca Cola Company? (1 mark) 3) Show how the market capitalisation and the number of shares outstanding are related. (1 mark) 4) What is the historical (marked ttm) P/E ratio of the Coca Cola Company? (1 mark) Show how this P/E ratio and the earnings per share of the Coca Cola Company are related. (1 mark) 5) Last years dividend was $1.58 per share. Suppose that this dividend is expected to increase by 4% per year, and that investors currently require an 7.5% per annum expected return to invest in the shares of banks with a similar risk to the Coca Cola Company. Use the dividend valuation model to value Coca Cola Company (KO) shares. (3 marks) 6) Do the shares look undervalued or overvalued by the market, compared to your valuation? Explain your reasoning. Please write down the date on which you have completed your analysis, as the market value of the shares will change over time. (2 marks

Valuation measures Trading information Market cap (intra-day) 5 233.95B Stock price history Enterprise value 3 265.54B Beta (3Y monthly) 0.30 Trailing P/E 30.15 52-week change 3 17.48% Forward P/E 1 24.16 S&P500 52-week change 3 11.05% PEG ratio (5-yr expected) 5.52 52-week high 3 55.92 Price/sales (ttm) 6.97 52-week low 3 44.42 Price/book (mra) 12.50 50-day moving average 3 54.21 Enterprise value/revenue 3 7.91 200-day moving average 51.79 Enterprise value/EBITDA 6 24.65 Share statistics Avg vol (3-month) 3 11.65M Financial highlights Avg vol (10-day) 3 11.19M Fiscal year Shares outstanding 5 4.28B Fiscal year ends 31 Dec 2018 Float 3.85B Most-recent quarter (mra) 27 Sep 2019 % held by insiders 1 0.75% Profitability % held by institutions 68.99% Profit margin 23.09% Shares short (30 Sep 2019) 4 34.31M Operating margin (ttm) 28.39% Short ratio (30 Sep 2019) 4 3.16 Share statistics Avg vol (3-month) 3 11.65M Financial highlights Avg vol (10-day) 11.19M Fiscal year Shares outstanding 5 4.28B Fiscal year ends 31 Dec 2018 Float 3.85B Most-recent quarter (mra) 27 Sep 2019 % held by insiders 1 0.75% Profitability % held by institutions 68.99% Profit margin 23.09% Shares short (30 Sep 2019) 34.31M Operating margin (ttm) 28.39% Short ratio (30 Sep 2019) 4 3.16 Management effectiveness Short % of float (30 Sep 2019) 4 0.81% Return on assets (ttm) 6.83% Short % of shares outstanding (30 Sep 2019) 4 0.80% Return on equity (ttm) 39.64% Shares short (prior month 30 Aug 2019) 4 31.97M Income statement Dividends & splits Revenue (ttm) 33.56B Forward annual dividend rate 4 1.6 Revenue per share (ttm) 7.86 Forward annual dividend yield 4 2.93% Quarterly revenue growth (yoy) 15.30% Trailing annual dividend rate 3 1.59 Gross profit (ttm) 20.09B Trailing annual dividend yield 3 2.91% EBITDA 10.77B 5-year average dividend yield 4 3.17 Income statement Dividends & splits Revenue (tm) 33.56B Forward annual dividend rate 4 1.6 Revenue per share (tm) 7.86 Forward annual dividend yield 4 2.93% Quarterly revenue growth (yoy) 15.30% Trailing annual dividend rate 3 1.59 Gross profit (ttm) 20.09B Trailing annual dividend yield 3 2.91% EBITDA 10.77B 5-year average dividend yield 4 3.17 Net income avi to common (tm) 8B Payout ratio 4 88.83% Diluted EPS (tm) 1.81 Dividend date 3 16 Dec 2019 Quarterly earnings growth (yoy) 37.90% Ex-dividend date 4 29 Nov 2019 Last split factor (new per old) 1/2 Balance sheet Last split date 3 13 Aug 2012 Total cash (mra) 12.99B Total cash per share (mra) 3.03 Total debt (mra) 42.48B Total debt/equity (mra) 205.37 Current ratio (mra) 0.92 Book value per share (mra) 4.37 Cash flow statement Operating cash flow (ttm) 9.71B Balance sheet Total cash (mra) 12.99B Total cash per share (mra) 3.03 Total debt (mra) 42.48B Total debt/equity (mra) 205.37 Current ratio (mra) 0.92 Book value per share (mrq) 4.37 Cash flow statement Operating cash flow (ttm) 9.71B Levered free cash flow (ttm) 11.27B