WACC report (2000 words):
1. Select one publicly held company. (Coca-Cola)
2. Introduction: why would you like to analyze WACC of the selected company.
3. Financial Performance: Analyse important financial ratios, i.e. Profitability, liquidity ratios, and gearing ratios. (2 ratios for each)
4. WACC: calculations of WACC (equation), how do you estimate WACC, i.e. cost of debt, cost of equity, weight of debt, and weight of equity.
5. Analysis of WACC: (a) trend analysis: over 3 years and/or (b) cross-sectional analysis: compare to competitors. (Choose 1)
6. Relationship between WACC and stock price.
7. Recommendations to firm management: Debt is too low or issue equity which valuation is good now.
8. Challenges of estimation of WACC.
9. Conclusion.
