Business, 10.09.2019 22:30, kutie543

Compute the weighted-average cost of capital for coca-cola as of the start of year +1. at the end of fiscal 2015, coca-cola had $44,213 million in outstanding interest-bearing debt on the balance sheet and no preferred stock. assume that the balance sheet value of coca-cola’s debt is approximately equal to the market value of the debt. the forecasts assume that coca-cola’s debt is approximately equal to the market value of the debt. the forecasts assume that coca-cola will face an interest rate of 2.0% on debt capital and that coca-cola’s average tax rate will be 24% (based on the past five-year average effective tax rate). coca-cola also had noncontrolling interests of $210 million at that time. the forecasts assume a 15.0% cost of capital for noncontrolling interests. (for our forecasts, we assume noncontrolling interests receive dividends equal to the required rate of return each year.)

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Compute the weighted-average cost of capital for coca-cola as of the start of year +1. at the end of...