Corporate Valuation Using the Free Cash Flow Method Applied to Coca-Cola

Index

Coca-Cola

equity and sustainable growth for, 11–14

free cash flow to equity (FCFE) model, 4, 38–39

required rate of return, 21, 27–28

valuing, 41–43

Computing sustainable growth, 10–11

Corporate financial management, 1–4

DuPont system, 5–14

EM. See Equity multiplier

Equity multiplier (EM), 5

Expected net cash flow, 3

FCFE model. See Free cash flow to equity model

Financing decisions, 1–2

Free cash flow to equity (FCFE) model

Coca-Cola (2001 to 2010), 4, 38–39

corporate financial management, 31–33

to equity, 36–38

present value of, 45–46

stock valuation, 31–33

super-normal growth model, 34–36

value of, 33–34

GDP. See Gross domestic product

Gross domestic product (GDP), 3, 18

Investing decisions, 1–2

Long-term ...