Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

glass
pen
clip
papers
heaphones

Business Economic Value Accounting Principles & Strategic Management Discussion

Business Economic Value Accounting Principles & Strategic Management Discussion

Question Description

I’m working on a business writing question and need guidance to help me study.

two classmates discussion responses with one reference each.

one: Business valuation determines the economic value of a business or the business unit. This is valuation can be used to determine the fair value of the process and this values are needed especially if you’re planning to sell and to buy another business. Ventilation is important also for the company for tax purposes. (Hayes, 2020).

Developing a business is learning is not an exact science. There are principles that can be employed to determine this value. (Hill, 2020). One of the methods of evaluation is using four methods and obtaining and average of the four methods (David and David, 2020) This method is employed in determining the value of Coca Cola. Using the financial data from Coca Cola 2020

It is estimated to worth 121 million dollars.

References:

David, F. R., & David, F. R. (2019). Strategic management: a competitive advantage approach, concepts and cases (17th ed.). Upper Saddle River: Pearson

Hayes, A(2020). How to Value a Company retrieved from https://www.investopedia.com/terms/b/business-valuation.asp

Hill, B (2020). Business Evaluation Method. retrieved from https://smallbusiness.chron.com/business-evaluation-methods-66107.html

Macrotrends (2021). Coca Cola Financial Trends. Retrieved from https://www.macrotrends.net/stocks/charts/KO/cocacola/financial-statements

Data;

Four Valuation Method.

Four Valuation Method

Shareholders Equity

19299

Net Income

7768

Stock Price

54.61

EPS

1.79

Number of OutstandingShares

4323

Goodwill

17506

Intangibles

28550

(Macrotrends, 2021)

Four Valuation Method

NetWorth Method

Share Holders Equity-Goodwill -Inthangibles

-26757

Net Income Method

Net Income X5

38840

Price Earning Ratio Method

(Stock Price/EPS)X NetIncome

236,989.10

Outstanding Shares Method

Number of outstanding shares X Stock price

236,079.03

Total

485151.125

Average of the Four Method

121,287.78

two: The need to assess a companies’ value is an important factor to retaining and gaining new investments. This means that it places a crucial role when comparing a company competitively to their competitors. Assessing financials can be a difficult task in an accurate manner, but if financial facts, common sense, good judgement, and transparency are being used then financial information can be deemed reliable (David & David, 2019, pp. 256). Performing these analyses allow Investor Relation Department to create information to be delivered to investors and potential investors to help retain and gain market edge. This is why the following calculations in Table A were performed using real time information from the Wall Street Journal coupled with accurate information from Coca-Cola Financial Statement.

Table A: Information Retrieved from Wall Street Journal

Coca-Cola Net Worth Analysis (in millions)

Valuation Method

Formula/Calculation

Valuation

Net Worth

$19,299,000(SE) – $17,506,000(GW) – $11,044,000(Intangible)

$ (9,251.00)

Net Income

$7,747,000 (NI) x 5

$ 38,735.00

Price-Earnings Ratio

$54.41 / $1.79 (Stock Price/EPS) x $7,747,000 (NI)

$254,863.63

Outstanding Shares

4,295 (Shares Outstanding) x $54.41 (Stock Price)

$233,690.95

Four Method Average

$ 129,509.65

One important aspect of these financial information to understand is that Coca-Cola is seen as defensive stable to investors. The reason being is that Coca-Cola is recognized by 94% with consumers purchasing 1.9 billion services a day (Hoy, 2018). This type of brand image is one of the reasons that Coca-Cola has positioned themselves defensively to investors. One aspect that gains investors and retain current investors is how much in dividends Coca-Cola is willing to pay with the current dividend yield at 3.32% (Hoy, 2018). This allows for Coca-Cola to report a negative Net Worth due to high intangible products but allows to show reflection on aspects that need to change. One element comes from the fact that Coca-Cola is still largely positioned with their sugary beverages as the cash cow. This as we learned last week is not the case as these sugary beverages are beginning to become the dogs in the market. They need to begin to revamp products and acquire new healthier options to release to the industry if they should hope to retain their position as the beverage leader.

References:

David, F., David, M. E., & David, F. (2019). Strategic management : a competitive advantage

approach, concepts and cases (17th ed.). Upper Saddle River: Pearson.

Hoy, L. (2018, February 8). Should you BUY Coca-Cola Co stock? 3 Pros, 3 Cons. Retrieved April 22, 2021,

from https://finance.yahoo.com/news/buy-coca-cola-co-st…

Wall Street Journal. (2021, April 22). KO | Coca-Cola CO. annual income statement – WSJ. Retrieved April 22, 2021, from https://www.wsj.com/market-data/quotes/KO/financia…

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Executive Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Executive Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Executive Papers is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Executive Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.