COCA COLA question: Examine the following ratios for the past 5 to 10 years and create a table of forecasting assumptions (follow Table 6-1in the textbook) with these ratios as a starting point

Sales growth rate

NOPAT margin

Beginning net operating working capital/Sales

Beginning net operating long-term assets/Sales

Beginning net debt to capital

After-tax cost of debt

Forecasting Assumptions for TJX 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5.7% 6.6% 7.1% 6.9% 6.7% 6.5% 6.3% 6.1% 5.9% 5.7% 7.9% 7.5% 7.1% 6.7% 6.3% 5.9% 5.5% 5.0% 4.5% 4.0% 0.6% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% TABLE 6-1 Forecast Year Sales growth rate NOPAT margin Beginning net operating working capital/sales Beginning net operating long-term assets/ sales Beginning net debt to capital ratio After-tax cost of debt 33.4% 34.0% 34.3% 34.5% 34.8% 35.0% 35.3% 35.5% 35.8% 36.0% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 Forecasting Assumptions for TJX 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5.7% 6.6% 7.1% 6.9% 6.7% 6.5% 6.3% 6.1% 5.9% 5.7% 7.9% 7.5% 7.1% 6.7% 6.3% 5.9% 5.5% 5.0% 4.5% 4.0% 0.6% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% TABLE 6-1 Forecast Year Sales growth rate NOPAT margin Beginning net operating working capital/sales Beginning net operating long-term assets/ sales Beginning net debt to capital ratio After-tax cost of debt 33.4% 34.0% 34.3% 34.5% 34.8% 35.0% 35.3% 35.5% 35.8% 36.0% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 57.5% 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73 2.73