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Determine the maximum premium coca-cola could pay

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Reference no: EM13657904

Experience in how to complete an Accretion Dilution. The company is Coca Cola.

Determine the maximum premium Coca-Cola could pay for Canada Dry before the deal would no longer be accretive based on the data.

Fill in Coca-Cola's current stock price on the DILUTION ANALYSIS worksheet.

Fill in Coca-Cola (NYSE: KO) shares outstanding on the DILUTION ANALYSIS worksheet.

Exhibit 1
Coca-Cola
Summary of assumptions for Acquisition (MM)

Buyer
Coca-Cola
Coca-Cola Stock Price - Current $0.00
Coca-Cola Shares Outstanding 0.0
Coca-Coal Revenues $47,915.00
Coca-Cola Net Income $8,716.00
Borrowing Cost 5.00%


Target
Canada Dry
Revenues $6,000.00
 EBITDA $1,510.00
EBIT $1,450.00
Book Value $2,100.00
Total Debt $1,300.00
Share Price $56.00
Shares Outstanding 166


Transactioon
Premium to Target Share Price 0%
Purchase Price $9,296.0
Consideration - Cash versus Stock 0%
Synergies Assumed 500.0
Effective Corporate Tax Rate 35.0%

Reference no: EM13657904

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