Coca-Cola (ticker symbol KO on NYSE)

STANDARDIZED BALANCE SHEET AND INCOME STATEMENT (millions)

BALANCE SHEET 12/31/2006 12/31/2007 12/31/2008 12/31/2009

ASSETS
Cash and Marketable Securitie 2,590.00 4,308.00 4,979.00 9,409.00
+ Accounts Receivable 2,587.00 3,317.00 3,090.00 3,758.00
+ Inventory 1,641.00 2,220.00 2,187.00 2,354.00
+ Other Current Assets 1,623.00 2,260.00 1,920.00 2,030.00
= Total Current Assets 8,441.00 12,105.00 12,176.00 17,551.00

Long-Term Tangible Assets 9,436.00 11,102.00 9,976.00 11,441.00

+ Long-Term Intangible Assets 5,135.00 12,219.00 12,505.00 12,828.00

+ Other Long-Term Assets 6,783.00 7,777.00 5,779.00 6,755.00

= Total Long-Term Assets 21,354.00 31,098.00 28,260.00 31,024.00
TOTAL ASSETS 29,795.00 43,203.00 40,436.00 48,575.00

LIABILITIES
Accounts Payable 929.00 1,380.00 1,370.00 1,410.00
+ Short-Term Debt 3,268.00 6,052.00 6,531.00 6,800.00
+ Other Current Liabilities 4,693.00 5,793.00 5,087.00 5,511.00
= Total Current Liabilities 8,890.00 13,225.00 12,988.00 13,721.00

Long Term Debt 1,314.00 3,277.00 2,781.00 5,059.00

+ Deferred Taxes 440.00 1,824.00 794.00 1,484.00
+ Other Long-Term Liabilities 2,231.00 3,133.00 3,401.00 2,965.00
= Total Long-Term Liabilities 3,985.00 8,234.00 6,976.00 9,508.00
TOTAL LIABILITIES 12,875.00 21,459.00 19,964.00 23,229.00

Minority Interest (NOTE A) 0.00 0.00 0.00 547.00

SHAREHOLDERS' EQUITY
Preferred Stock 0.00 0.00 0.00 0.00
+ Common Shareholder's Equity 16,920.00 21,744.00 20,472.00 24,799.00
= Total Shareholder's Equity 16,920.00 21,744.00 20,472.00 24,799.00
TOTAL LIABILITIES & EQUIT 29,795.00 43,203.00 40,436.00 48,575.00

Common Shares Outstanding a 2,318.00 2,318.00 2,312.00 2,303.00

INCOME STATEMENT 12/31/2006 12/31/2007 12/31/2008 12/31/2009

 Sales 24,088.00 28,857.00 31,944.00 31,006.00
- Cost of Goods Sold 7,222.00 9,229.00 10,146.00 9,864.00
= Gross Profit 16,866.00 19,628.00 21,798.00 21,142.00
- SG&A 9,431.00 10,945.00 11,774.00 11,381.00
- Other Operating Expense 938.00 1,163.00 1,283.00 1,343.00
= Operating Income 6,497.00 7,520.00 8,741.00 8,418.00
Investment Income 0.00 0.00 0.00 0.00
Other Income, net of Oth 6.00 -95.00 -1,923.00 -161.00
Other Income 195.00 173.00 53.00 92.00
Other Expense 189.00 268.00 1,976.00 253.00
- Net Interest Expense (In 27.00 220.00 105.00 92.00
Interest Income 193.00 236.00 333.00 249.00
Interest Expense 220.00 456.00 438.00 341.00
- Minority Interest (NOTE A 0.00 0.00 0.00 82.00
= Pretax Income 6,476.00 7,205.00 6,713.00 8,083.00
- Tax Expense 1,498.00 1,892.00 1,632.00 2,040.00
+ Unusual Gains, Net of Un 102.00 668.00 726.00 781.00
= Net Income 5,080.00 5,981.00 5,807.00 6,824.00
- Preferred Dividends 0.00 0.00 0.00 0.00
= Net Income to Common 5,080.00 5,981.00 5,807.00 6,824.00

NOTE A: "Minority interest" is now called "non-controlling interest."

 FORECAST ASSUMPTIONS

Cost of Capital Parameters Financial Projections

12/31/2010
Market Risk Premium 5.00% Sales Growth Rate
11,511.00 Risk Free Rate 3.00% NOPAT / Sales
4,430.00 Tax Rate 35.00% Beg. Net Working Capital / Sales
2,650.00 Cost of Debt 4.50% Beg. Net Long-Term Assets / Sales
2,988.00 Common Equity Beta 0.60
21,579.00 Net Debt / Book Value of Net Capital
Preferred Equity / Book Value of Net Capi
16,672.00 Shareholders' Equity / Book Value of Net
26,909.00

7,663.00 PRO FORMAS & VALUATION

51,244.00 HISTORICAL
72,823.00 2007 2008
PRO FORMA - BEGINNING BALANCE SHEET

1,887.00 Beginning Net Working Capital 229.00 624.00

9,376.00 + Beginning Net Long Term Assets 18,683.00 26,141.00
7,245.00 = Beginning Net Operating Assets 18,912.00 26,765.00
18,508.00
Net Debt 1,992.00 5,021.00
14,041.00 + Preferred Stock 0.00 0.00
4,163.00 + Shareholder's Equity 16,920.00 21,744.00
4,794.00 = Net Capital 18,912.00 26,765.00
22,998.00
41,506.00

314.00
Sales Growth #DIV/0! 10.70%
NOPAT / Sales 21.29% 18.43%
0.00 Beg. Net Working Capital / Sales 0.79% 1.95%
31,003.00 Beg. Net Operating Long Term Assets / Sales 64.74% 81.83%
31,003.00
72,823.00 Net Debt / Book Value of Net Capital 10.53% 18.76%
Preferred Equity / Book Value of Net Capital 0.00% 0.00%
2,292.00 Shareholders' Equity / Book Value of Net Capital 89.47% 81.24%

PRO FORMA - INCOME STATEMENT

12/31/2010 Sales 28,857.00 31,944.00
NOPAT (Net Operating Profits After Tax) 6,143.23 5,886.47
35,200.00 - Net Interest Expenses After Tax 162.23 79.47
11,234.00 = Net Income 5,981.00 5,807.00
23,966.00 - Preferred dividends 0.00 0.00
13,179.00 = Net Income to Common 5,981.00 5,807.00
1,703.00
9,084.00 Book Value on Common Equity Growth Rate 28.51%
0.00
4,425.00 RESIDUAL INCOME VALUATION
5,312.00 Cost of Common Equity
887.00 Net Income to Common
291.00 - Charge for Common Equity (Beg Book Value of Equity x Cost of Common Equity)
317.00 = Residual Income
608.00 Present Value of Residual Income
50.00 Terminal value
13,168.00
2,384.00 Beg. Book Value of Equity
1,025.00 + PV of Residual Income (forecasted years 1-2)
11,809.00 + PV of Residual Income (terminal value, beginning year 3)
0.00 = Estimated Value of Equity
11,809.00
= Number of Shares Outstanding (MM)
Estimated Value Per Share
inancial Projections 2011 2012 2013 (Terminal)

ales Growth Rate 10.00% 8.00% 3.00%

OPAT / Sales 20.00% 20.00% 15.00%
eg. Net Working Capital / Sales 3.00% 3.00%
eg. Net Long-Term Assets / Sales 105.00% 100.00%

et Debt / Book Value of Net Capital 27.75% 27.75% 27.75%

referred Equity / Book Value of Net Capital 0.00% 0.00% 0.00%
hareholders' Equity / Book Value of Net Cap 72.25% 72.25% 72.25%

HISTORICAL FORECAST TERMINAL

2009 2010 2011 2012 2013 2014

740.00 1,221.00 936.00 1,254.53 1,292.16 1,330.93

24,065.00 26,028.00 41,973.00 43,908.48 43,072.13 44,364.29
24,805.00 27,249.00 42,909.00 45,163.01 44,364.29 45,695.22

4,333.00 2,450.00 11,906.00 12,531.42 12,309.80 12,679.10

0.00 0.00 0.00 0.00 0.00 0.00
20,472.00 24,799.00 31,003.00 32,631.58 32,054.49 33,016.12
24,805.00 27,249.00 42,909.00 45,163.01 44,364.29 45,695.22

-2.94% 13.53%
22.23% 34.23% 24.04%
2.39% 3.47% 20.00% 20.00% 15.00%
77.61% 73.94%

17.47% 8.99% 27.75%

0.00% 0.00% 0.00%
82.53% 91.01% 72.25%

31,006.00 35,200.00 38,720.00 41,817.60 43,072.13 44,364.29

6,892.78 12,047.32 7,744.00 8,363.52 6,460.82 6,654.64
 68.78 238.32 348.25 366.54 360.06 370.86
6,824.00 11,809.00 7,395.75 7,996.98 6,100.76 6,283.78
0.00 0.00 0.00 0.00 0.00 0.00
6,824.00 11,809.00 7,395.75 7,996.98 6,100.76 6,283.78

-5.85% 21.14% 25.02% 5.25% -1.77% 3.00%

6.00% 6.00% 6.00%

7,395.75 7,996.98 6,100.76
1,860.18 1,957.89 1,923.27
5,535.57 6,039.08 4,177.49
5,222.24 5,374.76
139,249.61

31,003.00
10,597.00
123,931.65
165,531.65

2,292.00
72.22