Exercise illustrates the use of residual income (also known as abnormal profits) assessment approach. Students were asked to provide an assessment of Coca-Cola Company methodology evaluation of residual income and understand how it translates to the discounted cash flow method. Students learn how to forecast sales, performance, dividends and other assessment materials fed into the valuation model. Students also study the decomposition of changes in technology and Dupont, as the reclassification of financial statements to analyze changes Dupont «Hide
by Suraj Srinivasan, Beiting Cheng, Edward J. Riedl Source: Exercise 4 pages. Publication Date: November 14, 2012. Prod. #: 113056-PDF-ENG
Related Case Solutions & Analyses:
How one bad family member can undermine a family firm: Preventing the Fredo effect
EverTrue: Mobile Technology Development B
Khosla Ventures: Investing in Ethanol
CMM versus Agile: Methodology Wars in Software Development
Maumee Commercial Dining Products Inc.
Wal-Mart: Nonmarket Pressure and Reputation Risk (A)
PalmSource Inc.
Centennial Pharmaceutical Corporation
World Vision Internationals AIDS Initiative: Challenging a Global Partnership
Bradley Marquez: Reduction in Force (A)
