Research Coco- Cola and assess whether or not the organization has outstanding bonds payable or has invested in bonds from another organization. Do you support their choice to use bonds for financing or investment purposes? Why or why not?

Coca-Cola does not currently have any outstanding bonds payable and has not invested in any bonds from another organization. Instead, their primary source of financing is equity capital which they use for funding operations and growth initiatives as well as engaging in share repurchases to return value to shareholders. I support this choice because it allows them to retain full ownership of the company and keep control over decision-making processes while giving them access to additional capital when needed. Additionally, by relying on equity instead of debt, Coca-Cola can avoid the risks associated with taking on too much leverage such as potential credit downgrades or defaulting if market conditions worsen.

Moreover, using equity capital also helps keep Coca-Cola’s balance sheet healthy since there won’t be any added interest payments that need to be paid out each period. This means they are able to maximize their profits while still maintaining a strong financial position which can help build trust with investors and other stakeholders alike. use the Capital Asset Pricing Model (CAPM) to evaluate a company’s stock?

The Capital Asset Pricing Model (CAPM) is used to evaluate a company’s stock by calculating its expected return given the risk-free rate and market risk premium. The model helps investors determine whether a stock is worth investing in or not by comparing its expected return with that of other stocks in the same industry. In order to calculate the expected return for a particular stock, we need to first calculate its required rate of return, which is equal to the Risk Free Rate + Beta x Market Risk Premium. The beta coefficient measures how much volatility an individual security has compared to an overall market index such as the S&P 500. Once this calculation is made, investors can then compare their investment returns against those of similar companies in order to decide if it meets their desired outcome.