E 4.8 Converting Forecasts of Free Cash Flow to a Valuation: Coca-cola Company After reviewing the discounted cash flow valuation of Coca-cola in Exhibit 4.1, consider the free cash flows below that were reported by Coke for 2004-2007. They are based on the actual reported cash flows but are adjusted for interest and investments in interest-bearing securities (in millions of dollars). 2004 2005 2006 2007 Cash flow from operation $5,929 $6,421 $5,969 $7,258 Cash investment 618 1,496 2,258 7,068 Free cash flow 5,311 4,925 3,711 190 Pretend that you are sitting at the beginning of 2004, trying to value Coke, given these numbers as forecasts. What difficulties would you encounter in trying to value the firm at the beginning of 2004? What do you make of the declining free cash flows over the four years