Discussion Forum Go to the end of Chapter 8 and do Exercise 8C "Determine the Cash Value of Coca-Cola Company" Steps 1 thru 3.  Submit your calculations for the Net Worth Method and the Net Income Method, Price-Earnings Ratio, and the outstanding shares method along with your determination of Coca-Cola cash value for the  fiscal year, in the discussion forum.  After submitting the assignment, work with your peers and come to an agreement about Coca-Cola cash value. Text - Fred R David, F. R. (2019). Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 17th edition. Pearson. Chapter 8: Marketing, Finance/Accounting, R&D, and MIS Issues Chapter 9: Strategy Review, Evaluation, and Control Answer the question in APA format, NO plagiarism, need two peer responses Student – 1 Exercise 8C Determine the Cash Value of Coca-Cola The Net Worth Method             For the net worth method, the equation is: Shareholders’ Equity – Goodwill – Intangibles (David et al., 2020).  As of December 31, 2017, shareholders’ equity was $18.977 billion, goodwill was $9.401 billion, and intangibles was $368 million.  Placing those numbers into the formula we arrive at $18.977B – $9.401B – $368M = $9.208 billion.  Therefore, using the net worth method, the value of Coca-Cola would be $9.208 billion.  The Net Income Method When using the net income method, the equation would be: Net Income x 5 (David et al., 2020).  As of December 31, 2017, net income for Coca-Cola was $1.248 billion.  Multiplying $1.248 billion by 5 results in a total of $6.240 billion.  Therefore, using the net income method, the value of Coca-Cola would be $6.240 billion.  The Price-Earnings Ratio Method             The formula for the price-earnings ratio method is: (Stock Price ÷ EPS) x Net Income (David et al., 2020).  For the stock price, I used the stock price given in exercise 8A of $45.54.  To get EPS, the formula is net income/number of shares outstanding.  Again, I found the number of shares outstanding in exercise 8A (4.255 million).  To get EPS, the formula would be $1.248B/4.255B = $0.2933.  Then I would place all the numbers into the formula for price-earnings ratio: ($45.54 ÷ $0.2933) x $1.248 billion = $193,774,019,774.97 or $193.774 billion.   Therefore using the price-earnings ratio method the value of Coca-Cola would be $193.774 billion.  Outstanding Shares Method             The formula for the outstanding shares method is Number of shares Outstanding x Stock Price.   Placing the numbers in the formula, it would be 4.255B x $45.54 = $193.773 billion.  Therefore, using the outstanding shares method, the value of Coca-Cola would be $193.773 billion.  Average of the Methods – Coca-Cola’s Value Taking the average of the four methods would be: $193.773B + $193.774B + $6.240B + $9.208B = $402.995B ÷ 4 = $100.749B.  Valuation Method Formula Valuation Net Worth $18.977B - $9.401B - $368M = $9.208B $9.208 billion Net Income $1.248B x 5 = $6.240B $6.240 ...

1. Discussion Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the
Cash Value of Coca-Cola Company" Steps 1 thru 3. Submit
your calculations for the Net Worth Method and the Net Income
Method, Price-Earnings Ratio, and the outstanding shares
method along with your determination of Coca-Cola cash value
for the fiscal year, in the discussion forum. After submitting
the assignment, work with your peers and come to an agreement
about Coca-Cola cash value.
Text -
Fred R David, F. R. (2019). Strategic Management: A
Competitive Advantage Approach, Concepts and Cases, 17th
edition. Pearson.
Chapter 8: Marketing, Finance/Accounting, R&D, and MIS
Issues
Chapter 9: Strategy Review, Evaluation, and Control
Answer the question in APA format, NO plagiarism, need two
peer responses
Student – 1
Exercise 8C Determine the Cash Value of Coca-Cola
The Net Worth Method

2. For the net worth method, the equation is:
Shareholders’ Equity – Goodwill – Intangibles (David et al.,
2020). As of December 31, 2017, shareholders’ equity was
$18.977 billion, goodwill was $9.401 billion, and intangibles
was $368 million. Placing those numbers into the formula we
arrive at $18.977B – $9.401B – $368M = $9.208 billion.
Therefore, using the net worth method, the value of Coca-Cola
would be $9.208 billion.
The Net Income Method
When using the net income method, the equation would be: Net
Income x 5 (David et al., 2020). As of December 31, 2017, net
income for Coca-Cola was $1.248 billion. Multiplying $1.248
billion by 5 results in a total of $6.240 billion. Therefore, using
the net income method, the value of Coca-Cola would be $6.240
billion.
The Price-Earnings Ratio Method
The formula for the price-earnings ratio method is:
(Stock Price ÷ EPS) x Net Income (David et al., 2020). For the
stock price, I used the stock price given in exercise 8A of
$45.54. To get EPS, the formula is net income/number of
shares outstanding. Again, I found the number of shares
outstanding in exercise 8A (4.255 million). To get EPS, the
formula would be $1.248B/4.255B = $0.2933. Then I would
place all the numbers into the formula for price-earnings ratio:
($45.54 ÷ $0.2933) x $1.248 billion = $193,774,019,774.97 or
$193.774 billion. Therefore using the price-earnings ratio
method the value of Coca-Cola would be $193.774 billion.
Outstanding Shares Method
The formula for the outstanding shares method is
Number of shares Outstanding x Stock Price. Placing the
numbers in the formula, it would be 4.255B x $45.54 =
$193.773 billion. Therefore, using the outstanding shares
method, the value of Coca-Cola would be $193.773 billion.
Average of the Methods – Coca-Cola’s Value

3. Taking the average of the four methods would be: $193.773B +
$193.774B + $6.240B + $9.208B = $402.995B ÷ 4 =
$100.749B.
Valuation Method
Formula
Valuation
Net Worth
$18.977B - $9.401B - $368M = $9.208B
$9.208 billion
Net Income
$1.248B x 5 = $6.240B
$6.240 billion
Price-Earnings Ratio
($45.54 ÷ $0.2933) x $1.248B = $193.774B
$193.774 billion
Outstanding Shares
4.255B x $45.54 = $193.773B
$193.773 billion
Four Method Average
$100.749 billion
References
David, F., David, F., & David, M. (2020). Concepts & Cases
Strategic Management A Competitive Advantage
Approach. Pearson.
Student – 2
Step One

4. Based on the four approaches according to David, David, and
David (2020), “(1) the net worth method, (2) the net income
method, (3) the price-earnings ratio method, and (4) the
outstanding shares method” (pg. 264). Through being aware and
constant of financial values of a business, such as the cash
value, also known as the corporate valuation, businesses similar
and alike to Coca-Cola, it is an ethical and smart decision to
stay on top of financial items such as the items listed above.
Coca-Cola is a corporation with vast and ever-changing aspects
such as international affairs, business deals, and other daily
operations that have a major financial implication of financial
worth. Through Coca-Cola expanding into various new
endeavors and markets, Coca-Cola must be aware and have high
amounts of knowledge of the daily financial operations and
statements. Below is the proposes financial worth of Coca-Cola
based on the four approaches listed above:
Cash Value of Coca-Cola (in millions)
Net worth Method
$18,977-$9,401-$368= $9,208
Net Income Method
$1,248*5%=$62.4
Price-Earnings Ratio Method
($45.54/5.21) *$1,248=$10,908.62
Outstanding Shares Method
4,255*$45.54=$193,772.70
The net worth method is calculated by taking the shareholders
equity which is the total assets minus the total liabilities, minus
goodwill and then subtract the intangibles from that number as
well leaving us with $9,208 (in millions). The net income
method is calculated by taking the net income and multiplying it
by the interest rate given of 5%, giving us a total of $62.4 (in
3
millions). The price-earnings ratio is calculated by taking the
stock price of $45.54 and dividing that by the earnings per share
and then multiply that number by the net income of $1,248 (in

5. millions) giving us a total of $10,908.62 (in millions. Lastly,
the outstanding shares method is calculated by taking the
number of shares outstanding that is given to us and multiplying
it by the given stock price which gives us a total of $193,772.70
(in millions)
Step Two
The average of the four methods is (in millions) is as follows.
You must take the Net worth method, the net income method,
the price-earnings ratio method and the outstanding shares
method and add those together to get the sum of $213,951.72.
From there we have four methods. Therefore, we must divide
that number by four to give us an average of $53,487.93.
($9,208+$62.4+$10,908.62+$193,772.70)/3= $53,487.93
4
References
David, F. R., David, F. R., and David, M. E. (2020). Strategi c
Management Concepts and Cases,
Seventeenth Edition. Pearson. pg(s). 264.
Discussion
Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the

6. Cash Value of Coca
-
Cola Company"
Steps 1 thru 3.
Submit your calculations for the Net Worth Method and the Net
Income Method,
Price
-
Earnings Ratio, and the outstanding shares method along with y
our determination of Coca
-
Cola cash value for the
fiscal year, in the discussion forum.
After submitting the assignment,
work with your peers and come to an agreement about Coca
-
Cola cash value.
Text
-
Fred R David, F. R. (2019).
Strategic
Management: A Competitive Advantage Approach,
Concepts and Cases, 17th edition.
Pearson.

7. Chapter
8
:
Marketing,
Finance/Accounting,
R&D,
and
MIS
Issues
Chapter
9
:
Strategy
Review,
Evaluation,
and
Control
Answer

8. the
question
in
APA
format,
NO
plagiarism,
need
two
peer
responses
Student

9. –
1
Exercise
8C
Determine
the
Cash
Value
of
Coca
-
Cola
The
Net
Worth
Method
Discussion Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the
Cash Value of Coca-Cola Company"
Steps 1 thru 3. Submit your calculations for the Net Worth
Method and the Net Income Method,
Price-Earnings Ratio, and the outstanding shares method along

10. with your determination of Coca-
Cola cash value for the fiscal year, in the discussion forum.
After submitting the assignment,
work with your peers and come to an agreement about Coca-
Cola cash value.
Text -
Fred R David, F. R. (2019). Strategic Management: A
Competitive Advantage Approach,
Concepts and Cases, 17th edition. Pearson.
Chapter 8: Marketing, Finance/Accounting, R&D, and MIS
Issues
Chapter 9: Strategy Review, Evaluation, and Control
Answer the question in APA format, NO plagiarism, need two
peer responses
Student – 1
Exercise 8C Determine the Cash Value of Coca-Cola
The Net Worth Method
Discussion Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the
Cash Value of Coca-Cola Company" Steps 1 thru 3. Submit
your calculations for the Net Worth Method and the Net Income
Method, Price-Earnings Ratio, and the outstanding shares

11. method along with your determination of Coca-Cola cash value
for the fiscal year, in the discussion forum. After submitting
the assignment, work with your peers and come to an agreement
about Coca-Cola cash value.
Text -
Fred R David, F. R. (2019). Strategic Management: A
Competitive Advantage Approach, Concepts and Cases, 17th
edition. Pearson.
Chapter 8: Marketing, Finance/Accounting, R&D, and MIS
Issues
Chapter 9: Strategy Review, Evaluation, and Control
Answer the question in APA format, NO plagiarism, need two
peer responses
Discussion
Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the
Cash Value of Coca
-
Cola Company"
Steps 1 thru 3.
Submit your calculations for the Net Worth Method and the Net
Income Method,
Price
-
Earnings Ratio, and the outstanding shares method along with y
our determination of Coca
-
Cola cash value for the

12. fiscal year, in the discussion forum.
After submitting the assignment,
work with your peers and come to an agreement about Coca
-
Cola cash value
.
Text
-
Fred R David, F. R. (2019).
Strategic Management: A Competitive Advantage Approach,
Concepts and Cases, 17th edition.
Pearson.
Chapter
8
:
Marketing,
Finance/Accounting,
R&D,
and

13. MIS
Issues
Chapter
9
:
Stra
tegy
Review,
Evaluation,
and
Control
Answer
the
question
in
APA
format,
NO
plagiarism,

14. need
two
peer
responses
Discussion Forum
Go to the end of Chapter 8 and do Exercise 8C "Determine the
Cash Value of Coca-Cola Company"
Steps 1 thru 3. Submit your calculations for the Net Worth
Method and the Net Income Method,
Price-Earnings Ratio, and the outstanding shares method along
with your determination of Coca-
Cola cash value for the fiscal year, in the discussion forum.
After submitting the assignment,
work with your peers and come to an agreement about Coca-
Cola cash value.
Text -
Fred R David, F. R. (2019). Strategic Management: A
Competitive Advantage Approach,
Concepts and Cases, 17th edition. Pearson.
Chapter 8: Marketing, Finance/Accounting, R&D, and MIS
Issues
Chapter 9: Strategy Review, Evaluation, and Control
Answer the question in APA format, NO plagiarism, need two
peer responses