Coca Cola Company Find out your Coca Cola credit rati.docx - Coca Cola Company Find out your Coca Cola credit rating Rating agencies such as Moody’s

Coca Cola Company Find out your Coca Cola  credit rati.docx

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Coca Cola Company Find out your Coca Cola credit rating. Rating agencies such as Moody’s and Standard and Poor’s assign ratings to companies. AAA is high, AA is lower, BBB is even lower, etc. The higher the rating, the lower the cost of debt capital. Explain what your company’s credit rating is and the reasons for the high or low rating based on your research. Also, use the Fidelity Fixed Income Web page to find out what the current return is for a 30- year bond for a corporation with the rating that your company has. This yield will be the approximate cost of debt capital for your company. We will call the cost of debt RD. Now estimate the cost of equity for Coca Cola . First you will need the beta; Beta of this company’s stock
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The beta of the company’s stock is 0.52 (NASDAQ, 2019). Given the fact that the markets beta is set at 1, Coca Cola’s stock is neither high risk nor low risk but somewhere in between. This is because it falls at the middle point that is
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  • Fall '16
  • Christopher L. Litten, MA, Ph.D.

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