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Running head: EXERCISE 8C: DETERMINE THE CASH VALUE OF COCA-COLA1EXERCISE 8C: DETERMINE THE CASH VALUE OF COCA-COLAStudent’s NameInstitutional Affiliations
EXERCISE 8C: DETERMINE THE CASH VALUE OF COCA-COLA2Exercise 8C: Determine the Cash Value of Coca-ColaStep 1: Calculate the financial worth of Coca-Cola based on four approaches: (1) the networth method, (2) the net income method, (3) the price-earnings ratio method, and (4) theoutstanding shares method.Net-worthy method Net-worth is equal to the shareholder's equity, subtract the amount paid as goodwill and totalintangibles (David & David, 2020). This can be expressed as Net-worthy +Equity from shareholders-(goodwill in $+ Total intangibles)1698100- (1026300+7007000)$ 289,000. This method is beneficial for a company to understand its debt level in comparison to theassets available in the firm. Based on the results from the calculation, the company has moreassets than debts. This is because the results are positive. This is a good indicator that Coca Colais performing well. The higher figure illustrates the company’s potential to balance its debts with