Coca-Cola Amatil Ltd: Largest Company in the Beverage Industry in Asia Pacific Region
Research School of Finance, Actuarial Studies and Applied Statistics
Group Assignment Cover Sheet
Student Names and Numbers
Lingyan Cai(u5440983)
Qinwei Zhao(u5438344)
Xurui Zhang(u5440502)
Ruiwen Xu(u5426022)
Feng Guo(u5342199)
Course Code and Name FINM7044 Applied Valuation
Lecturers Name Dr Dean Katselas
Tutors Name Jan Drienko Flavio Nardi
Assignment Number 1 Coca-Cola Amatil Ltd(CCL)
Due Date 2014-03-26
Date Submitted 2014-03-26
We hereby confirm that the work contained in this assignment is solely my own except for reliance on material that is identified and cited according to accepted academic practice.
Signed Lingyan Cai Qinwei Zhao Xurui Zhang Ruiwen Xu
Feng Guo
Date 2014-03-26
Coca-Cola Amatil Limited (CCL) is one of the largest companies in beverage industry in the Asia-Pacific region, and its shares are traded on the Australian Securities Exchange. In the following, we will estimate CCL’s cost of equity, cost of debt and weighted average cost of capital (WACC) separately, and detailed calculations will be shown in the Excel file.
First we use historical beta to estimate the beta of Coca-Cola Amatil Limited. The conventional approach for estimating the beta of an investment is a regression of returns on the investment against returns on a market index. But we will further discuss bottom-up beta to make comparison..
Reproduced in Figure 1 is the beta estimated for CCL from March 2009 to March 2014 (using monthly returns). Note that the index used is the Australian Stock Exchange. Based on this regression, we arrive at the following equation (Detailed data are shown in the Regression Excel attached):
Returns CCL = 0.4146%+ 0.4240 Returns ASX R-squared = 11.47% [0.0442]
Figure 1
Then we use bottom-up beta to estimate the
Group Assignment Cover Sheet
Student Names and Numbers
Lingyan Cai(u5440983)
Qinwei Zhao(u5438344)
Xurui Zhang(u5440502)
Ruiwen Xu(u5426022)
Feng Guo(u5342199)
Course Code and Name FINM7044 Applied Valuation
Lecturers Name Dr Dean Katselas
Tutors Name Jan Drienko Flavio Nardi
Assignment Number 1 Coca-Cola Amatil Ltd(CCL)
Due Date 2014-03-26
Date Submitted 2014-03-26
We hereby confirm that the work contained in this assignment is solely my own except for reliance on material that is identified and cited according to accepted academic practice.
Signed Lingyan Cai Qinwei Zhao Xurui Zhang Ruiwen Xu
Feng Guo
Date 2014-03-26
Coca-Cola Amatil Limited (CCL) is one of the largest companies in beverage industry in the Asia-Pacific region, and its shares are traded on the Australian Securities Exchange. In the following, we will estimate CCL’s cost of equity, cost of debt and weighted average cost of capital (WACC) separately, and detailed calculations will be shown in the Excel file.
First we use historical beta to estimate the beta of Coca-Cola Amatil Limited. The conventional approach for estimating the beta of an investment is a regression of returns on the investment against returns on a market index. But we will further discuss bottom-up beta to make comparison..
Reproduced in Figure 1 is the beta estimated for CCL from March 2009 to March 2014 (using monthly returns). Note that the index used is the Australian Stock Exchange. Based on this regression, we arrive at the following equation (Detailed data are shown in the Regression Excel attached):
Returns CCL = 0.4146%+ 0.4240 Returns ASX R-squared = 11.47% [0.0442]
Figure 1
Then we use bottom-up beta to estimate the