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Total Assets: $ 90 million Total Liabilities: $40 million Total Equity: $ 50 million Beta 1.2 Current Price of Stock = $42.25 per share Bond

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Total Assets: $ 90 million Total Liabilities: $40 million Total Equity: $ 50 million Beta 1.2 Current Price of Stock = $42.25 per share Bond Yield on most recent debt issue = 3.9% Risk-free rate (Rrt) = 1.0% Return on average small capital stock in the stock market (Rm) - 12.0% Average company tax rate = 24% Average growth in dividends for the last five years = 4.3% Most recent dividend = $1.50 per share From this information for Coca-Cola, a) calculate out the cost of equity (Rre) using both CAPM and the constant dividend growth model. Then, b) using the highest value for Rre that you calculated above, calculate this company's WACC using the information provided above. Total Assets: $ 90 million Total Liabilities: $40 million Total Equity: $ 50 million Beta 1.2 Current Price of Stock = $42.25 per share Bond Yield on most recent debt issue = 3.9% Risk-free rate (Rrt) = 1.0% Return on average small capital stock in the stock market (Rm) - 12.0% Average company tax rate = 24% Average growth in dividends for the last five years = 4.3% Most recent dividend = $1.50 per share From this information for Coca-Cola, a) calculate out the cost of equity (Rre) using both CAPM and the constant dividend growth model. Then, b) using the highest value for Rre that you calculated above, calculate this company's WACC using the information provided above

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