Question

As of December 31, 2019 Coca-Cola Inc. had 7,040 million shares of common stock issued and...

As of December 31, 2019 Coca-Cola Inc. had 7,040 million shares of common stock issued and 2,760 million shares in treasury. Diluted weighted average shares outstanding during fiscal 2019 were 4,314 million. On April 2, 2020 the stock was trading at 43.00 per share. Based on this information and the information provided below, complete the following:

Capital structure: (in millions)

              Operating liabilities                      $__________________________(1)

              Debt                                                 $31,769

              Total Liabilities                              $65,283

              Common equity                             $21,098

              Total Assets                                    ____________________________(2)

              Total Capital (Book)                      ____________________________(3)

Invested Capital – At Market Value

             

(4)______________________              $_______________________________(5)

             

                    Preferred stock                                                0                                             .

(6)______________________              $_______________________________(7)

             

Total Invested Capital                   $                                                                    (8)

How much value is the market adding to the business (Market Value Added)?__________________(9)

What is the Company’s debt to equity ratio ___________________________________________(10)

Homework Answers

Answer #1

Ans.1

operating liabilities = total liabilities - Debt

=$65,283 - $31,769

=$33,514 million

Ans.2

total assets = total liabilities + common equity

=65283+21098

=$86,381 million

Ans.3

Total capital(book) = total long term debt + equity

=31769+21098

=$52,867 million

Invested capital-at market value

Ans.4

market value of owner's equity =(7040+2760)millions $43

=$404,200 million

Ans.5

market value of long term debt = $31,769 million

Ans.8

total market value = market value of owner's equity + market value of long term debt

=$404,200 million+ $31,769 million

=$435,969 million

Ans.9

market value added = market value of company - book value of equity and debt

=$435,969 million - $52,867 million

=$383,102 million

Ans.10

Debt-equity ratio = debt/equity

=total liabilities/equity

=65283/21098

=3.09

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