Examine the liabilities on Coca-Colas balance sheet.

a. How much interest-bearing debt does Coca-Cola have outstanding? (You can assume that other short-term liabilities represent sundry payables, and other long-term liabilities represent health care and pension obligations.)

b. How much did Coca-Cola obtain in equity capital when it issued stock originally to the financial markets?

c. Is there any significance to the fact that the retained earnings amount is much larger than the original paid-in capital?

d.market value of Coca-Colas equity is $140 billion. What is the book value of equity in Coca-Cola? Why is there such a large difference between the market value of equity and the book value of equity?

d. The

In the problems following, use an equity risk premium of 5.5 percent if none is specified Coca-Cola's balance sheet for December 1998 is summarized (in millions of dol- lars) for problems 1 through 9: $ 3,141 4,462 Other short-term liabilities 1,037 8,640 S 1,648Accounts payable Cash and near-cash Marketable securities Accounts receivable Other current assets 1,049 Short-term borrowings 1,666 2,017 6,380Long-term borrowings 1,863Other long-term liabilities1,415 5,486 Current liabilities Current assets Long-term investments 687 Noncurrent liabilities Depreciable fixed assets Nondepreciable fixed assets 2,102 199 2,016 3,060 5,343 8,403 $19,145 Accumulated depreciation Share capital (paid-in) 3,669 Retained earnings Net fixed assets Other assets Total Assets 7,233 $19,145 Shareholder's equity Total Liabilities and Equity