COCA-COLA BALANCE SHEET 2020 IN MILLION DOLLARS Cash, Cash Equivalents & Short Term Investments 10,914 Current Liabilities 14,601 Receivables 3,144 Total Non Current Liabilities Net Minority Interest 51,411 Inventory 3,266 Total Liabilities Net Minority Interest 66,012 Prepaid Assets 1,916 Current Assets 19,240 Stockholders' Equity 19,299 Minority Interest 1,985 Total non-current assets 68,056 Total Equity Gross Minority Interest 21,284 Total Assets 87,296 Total liabilities and equity 87,296 Coca-Cola share price ($) 56 Coca-Cola number of outstanding shares (millions) 4,320 COCA-COLA CASH FLOW STATEMENT 2020 COCA-COLA VALUATION Cash Flow from Continuing Operating Activities 9,844 Free cash flow in 2020 Purchase of PPE -1,177 FCF growth rate until 2025 Sale of PPE 189 FCF growth rate after 2025 Net Business Purchase And Sale -863 Weighted average cost of capital Net Investment Purchase And Sale 252 Net Other Investing Changes 122 2020 2021 2022 2023 2024 2025 Cash Flow from Continuing Investing Activities -1,477 FCF Terminal value Cash Flow from Continuing Financing Activities -8,070 Total Enterprise value 1.Compute the Coca-Cola's enterprise value in 2020 using the accounting approach 2. Compute the Coca-Cola's enterprise value in 2020 using the efficient market approach 3. Compute the Coca-Cola's free cash flow in 2020 using the Coca-Cola's cash flow statement in 2020. Assume that (1) only "Purchase of PPE" item in the investing activities section is operating-related, and (2) the net interest is zero, i.e., there is no tax shield 4. ompute the Coca-Cola's enterprise value in 2020 using the discounted cash flow approach in Chapter 2 5. Using Excel Solver, compute the Coca-Cola's implied cost of capital that equates the enterprise value in 2020 using the discounted cash flow approach with its counterpart using the efficient market approach. Assume that (1) the Coca-Cola's short term growth rate from 2021 to 2025 is 14%, (2) the Coca-Cola's long term growth rate after 2025 is 7%, and (3) the mid-year rather than end-year discounting is applied.