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Coca Cola: Date 2020 Calculate the required rate of Coca Cola return to invest on the company using the CAPM (Rate of Return = Risk-free

Coca Cola: Date 2020

  1. Calculate the required rate of Coca Cola return to invest on the company using the CAPM (Rate of Return = Risk-free rate + Average Risk Premium * Beta).

  2. What is the current weighted average cost of capital (WACC)? What effect would a change in the debt to equity ratio have on the weighted average cost of capital?

  3. How is the capital Structure of the firm? What do you conclude about it?

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