Homework
Instructions
Imagine that you are the CEO of The Coca-Cola Company. The company has excess cash on hand and is seeking to invest it. In a 1500 words essay, analyze your options globally and come up with a strategy to put the company's $500 million idle cash fund to use. Cite a minimum of three external resources to support the content of your analysis. Use the current APA style guide to format your homework.
Cover the following concepts in your analysis:
I. Risk and return associated with the investment
II. Your discussion should focus on the following risks: project-specific risk, industry-specific risk, competitive risk, international risk, and market risk
i. Discuss how diversification in an investment helps in reducing the risk associated with the investment
ii. Use different models like CAPM, APM, etc., to conduct an analysis of risk vs return
III. Valuation methods used to choose the best investment option
i. Your discussion should focus on cost approach, market approach and discounted cash flow approach.
ii. Use examples and comparative analysis to support your discussion
IV. A detailed financial plan for the multinational corporation
i. Here you will discuss how you will create a detailed financial plan for the selected organization. Make sure to consider various barriers associated with capital flows.
ii. The multinational financial management process includes cash management, inventory and accounts receivable management, financing and capital expenditures.
iii. Consider the factors affecting International Portfolio Investment
V. Cost of capital associated with the corporation based on the current capital structure
i. In this section include cost of capital computations associated with the selected organization.
ii. Discuss each component used in the cost of capital formula
iii. Discuss challenges associated with cost of capital computations
VI. Capital budgeting and capital structure decisions
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.