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Value The Coca Cola Company Research Proposal

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61, as opposed to only 28.90, the industry average (Reuters, 2009); this means that the company uses much more debt than equity to finance its operations and that debt reimbursement might constitute for priority in profit distribution All the above indicate that the largest beverage maker in the world is not as successful as initially believed. Yet, an estimation of the equity futures cannot occur without a look at the company's share. Its value today (September 2, 2009) is of $49.80. In the near past, the KO stock has not suffered major modifications. Yet, its more distant past evolution has been fluctuating. The peak was registered in 2006, when the Coca Cola share was sold for an estimated value of $65; the lowest amount of money paid for it was slightly lower than $40 and it was reached in 2004. The chart below reveals this evolution:

Source: MNS Money, 2009

Based on the past evolutions and the current state of the economy, it is expected that the Coca Cola Company share loses value. As such, in a year's time,...

Purchasing the futures now would materialize in loses for the investors. Given this situation then, it would be best to invest the money in safer placements, such as bank deposits, which offer a 12% interest rate.

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2009, the Coca Cola Company, Reuters, http://www.reuters.com/finance/stocks/ratios?symbol=KO.N last accessed on September 3, 2009

2009, Coca Cola Co (KO), MSN Money Central, http://moneycentral.msn.com/investor/charts/chartdl.aspx?D5=0&D4=1&ViewType=0&CP=0&PT=7&CE=0&PeriodType=7&D3=0&Symbol=KO&ShowChtBt=Refresh+Chart&DateRangeForm=1&C9=1&DisplayForm=1&ComparisonsForm=1 last accessed on September 3, 2009

2009, the Coca Cola Company (KO), Yahoo Finance, http://finance.yahoo.com/q?s=ko last accessed on September 3, 2009

The Coca Cola Company 2008 Annual Report, Retrieved from http://www.thecoca-colacompany.com/investors/pdfs/2008_annual_review/2008_annual_review.pdf on September 2, 2009
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